Question1: Paying a stock dividend ______ the retained earning account.
[A] Increases
[B] Reorganizes
[C] Decreases
[D] Has no effect on
Question2: The _____ is the rate of return a firm must earn on its investments in projects in order to maintain the market value of its stock.
[A] Internal rate of return
[B] Gross profit margin
[C] Yield to maturity
[D] Cost of capital
Question3: The _______ costs are a function of time, not sales, & typically contractual
[A] variable
[B] Operating
[C] Fixed
[D] Semi-variable
Question4: In order to enhance the wealth of stock holders & to send positive signals to the market, corporations generally raise funds using the following order;
[A] Debt, retain earning, equity
[B] Equity, retain earnings, debt
[C] Retain earnings, equity, debt
[D] Retain earnings, debt, equity
Question5: Dividend policy is a form of
[A] Working capital policy
[B] Dividend reinvestment polity
[C] Capital budgeting policy
[D] Financing policy