1. The ex-dividend date is the date
A. after which no one can purchase more shares of stock.
B. on which the dividend check is mailed to the holders-of-record.
C. the corporation's board of directors actually declares the dividend.
D. after which stockholders are not entitled to the next dividend payment.
2. Maxwell Electronics earned $13 million last year and maintains a 30% dividend payout ratio. The company has 2 million shares of common stock outstanding and a P/E ratio of 12. What is the price per share of Maxwell Corporation's stock?
A. $72.00
B. $75.00
C. $78.00
D. $81.00
3. Which of the following can influence a company's dividend policy?
A. Legal rules concerning capital impairment
B. Access to financing in the capital markets
C. The tax position of the current shareholders
D. All of the above can influence dividend policy
4. Marine Biotechnologies, Inc. earned $150 million this year, of which $90 million was retained for future investment projects and the remainder paid out as dividends to shareholders. What was the company's dividend payout ratio?
A. 20%
B. 40%
C. 60%
D. 67%