Question 2 1 pts Which of the following statements related to dividends and repu

Question

Question 2 1 pts Which of the following statements related to dividends and repurchases is TRUE? o 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 O O cash dividends are declared by the firm's chief executive officer (CEO) Next

Explanation / Answer

Dividend is the residual income of any business which distributed to the shareholder of the company.

Option 2: Stock Price is typically falls on the day that a stock goes ex-dividend - So this statement is false,

Option 3: Repurchae of the stock is done on the basis of the market price of the stock so the given statement is false.

Optrion 4 : Cash dividends are declared by the board of directors of the companies , so the given statement is not true

Option 1 = Dividend payout is the residual dividend which are given to shareholders after the all expenses claimed. Dividend will be depend on the profit of the company and it will be change the every year to year - So the given statement is true.

Answer = Option 1

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