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NEW QUESTION: 1
Which of the following statements about dividend policy and capital structure is FALSE?
A. A company's growth rate equals the retention ratio multiplied by return on equity.
B. Companies should use the residual dividend model to set the long-run target dividend payout ratio, but should not use it to set the dividend payment in any one year.
C. If the board of directors decreases the target payout ratio, the stock price may increase or decrease.
D. Assuming a world of taxes and bankruptcy, there is an optimal capital structure that maximizes earnings per share (EPS) and minimizes the cost of debt.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The optimal capital structure is the one that maximizes the stock price and minimizes the cost of capital.
The other statements are true. "A company's growth rate equals the retention ratio multiplied by return on equity," is simply the word version of the equation g = (1 - Payout Ratio) * ROE. Know this equation for the exam! A company that uses the residual dividend model to set the dividend payment in any one year will not have a stable payout ratio, and investors will likely demand a higher required return to offset this uncertainty. The higher required return will result in a lower stock price. If the board of directors decreases the target payout ratio, the stock price may increase or decrease because there will be two opposing effects. For example, this may result in a decrease in stock price (due to lower dividend payout, D1), and an increase in the stock price due to increased funds available for reinvestment. Remember: g = (1 - Payout) * ROE. The net effect partially depends on investor's preference for dividends over capital gains or vice versa.

NEW QUESTION: 2
A mass production line is essentially a timing machine which moves goods from place to place in a given time. In that given time, a man has to be available to perform a given task. He is, in fact, in many ways a slave of the machine. It fixes his time and fixes his movements, and he has to produce a series of semi- intelligent mechanical motions to keep the machine fed and moving. This is what I mean by saying that mechanization is his master.
Automation, on the contrary, by being a self-adapting and a changing piece of mechanism, enables a man to work at whatever pace he wants to work, because the machine will react to him. He is the master of the machine, except in the simpler processes. The machine that forms part of an automated system is not predetermined: this kind of machine gives information and suggests a course of action, but it does not necessarily say "I won't wait." Which of the following does the author primarily use in this passage?
A. personal experience
B. comparison-contrast
C. narration
D. specific examples
Answer: B
Explanation:
Explanation/Reference:
Explanation:

NEW QUESTION: 3
Siehe Ausstellung.

Siehe Ausstellung. Ein Techniker muss ein Subnetz für ein neues Büro hinzufügen, das dem Netzwerk 20 Benutzer hinzufügt. Welche Kombination aus IPv4-Netzwerk und Subnetzmaske weist der Techniker zu, um die Verschwendung von Adressen zu minimieren?
A. 10.10.225.48 255.255.255.240
B. 10.10.225.32 255.255.255.224
C. 10.10.225.48 255.255.255.224
D. 10.10.225.32 255.255.255.240
Answer: B