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word is Leia. It is case sensitive, so use a capital letter L Question 2 1 pts W

ID: 2796210 • Letter: W

Question






word is Leia. It is case sensitive, so use a capital letter L Question 2 1 pts Which of the following statements related to dividends and repurchases is TRUE? the dividend payout ratio of a firm that follows a residual dividend policy is likely to vary significantly from year to year stock prices typically rise on the day that a stock goes ex-dividend most tender offers to repurchase stock are made at a price slightly below the stock price that prevailed just before the announcement of the offer cash dividends are declared by the firm's chief executive officer (CEO) Next

Explanation / Answer

The first statement is true. A residual dividend policy involves paying out the residual income that remains after meething the capital expenditures. Due to this, the dividends can vary a lot. In one year, dividend might be nil due to all amount applied as capital expenditure whereas in another year, it might be extraordinary high due to lack of capital expenditures.