QUESTION 1
A firm should only pay cash dividends during the maturity phase.
True
False
QUESTION 2
A stock dividend is a lower cost alternative to a cash dividend and can be considered at all but the initial stages of a corporate life cycle.
True
False
QUESTION 3
A poison pill strategy should be considered long before an invasive corporate raider attempts to buy your firm.
True
False
QUESTION 4
A dividend is an information signal to the marketplace about future prospects for the firm.
True
False
QUESTION 5
A consistent dividend policy should be known by the market and shareholders and should be maintained.
True
False
QUESTION 6
ESOP’s should be undertaken as a least cost incentive for employees to stick with the firm and grow it.
True
False
QUESTION 7
Firms can buy-back up to 10% of their own stock every six months.
True
False
QUESTION 8
Stock buybacks should be considered with other alternative investments, using the same criteria of payback, NPV or IRR.
True
False
QUESTION 9
Buybacks can be used to maintain a certain stock price range.
True
False
QUESTION 10
Buybacks are placed into treasury stock and can be used later as currency for acquisition.
True
False