Dividends ace best defined as R cash paymonts to either bonholders or shareholde
ID: 2792026 • Letter: D
Question
Dividends ace best defined as R cash paymonts to either bonholders or shareholders C cash or stock payments to sharehollers D cash or stock payments to either Margie opend·used bok "nee and.. both the100 Proet owner and te stma maaan, which entity dees Margie own if abe is orsonally liable for all the store's debss A Sole EB. Limited pertnersbhiy C. Corporation D. Joint stock oompany The primary goal of finncial mangeent is o mainize which one oor a corpsratioenr A. Current profits B. Market share C. Number of shares outstanding D Market value of existing stock The Carter Company's bonds mature in 10 years have a par valhue of $1,000 and an anmaual coupon payment of $80. The market interest rate for the bonds is 9% What is the prioe ofthese bonds? A. $935.82 B. $941.51 C $958 15 D $96441 Gross domestic product is caloulatod by summing up A. the total quantity of goods and services in the economy B. the total quantity of goods and services produced in the economy during a period of time C the total market value of goods and services in the economy D. the total market value of final goods and services prodaced in the economy The Good Life Store has sales of $79,600. The cost of goods sold is $48,200 and the other costs are $18,700 Depreciation is $8,300 and the tax rate is 34 percent. What is the net income? A. $2,904 B. $8,382 C $11,204 D $14,660 For the year, Movers United has net income of $31,800, net new equity of $7,500, and an addition to retained eamings of $24,200. What is the amount of the dividends paid A. $100 B. $7,500 C. $7,600 D. $15,100 The primary openating goal of a publicly-owned firm interested in serving its stockholders should be to A. Maximize its expected total corporate income B. Maximize its expected EPS D. Maximize the stock price per share over the long run, which is the stock's intrinsio Which of the following is an example of a capital market instrument? A. Commercial paper B. Preferred stock C. U.S. Treasury bills D. Banker's acceptances You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker. This is an example of A. A money market transaction B. A primary market transaction. C A secondary market transaction D. A futures market transactionExplanation / Answer
Dividends are best defined as cash or stock payments to shareholders (C)
Sole proprietorship (A)
Market value of existing stock (D)
Current market price of bond = Present of future cash flows from bond
= 80 * PVAF(9%, 10 yrs) + 1,000 * PVIF(9%,10th year)
= (80 * 6.4177) + (1,000 * 0.4224)
= 513.42 + 422.40
= 935.82 (A)
Total market value of final goods and services produced in a economy during a period of time (D)
Profit before taxation = Sales - COGS - other costs - Depreciation
= 79,600 - 48,200 - 18,700 - 8300
= $ 4,400
Net income = PBT - tax @ 34% = 4,400 - 4,400 * 34%
= 4,400 - 1,496
= $ 2,904 (A)
Net income available for distirbution = 31,800 - 24,400 = $ 7,600 (C) = Dividends paid
Primary operating goal of publicly owned firm .... is to maximise the stock price per share over the long run, which is stock's intrinsic value (D)
Preferred stock (B)
Secondary market transaction (C)