question

(1) If shareholders anticipate receiving a regular dividend what advantage would they receive if the

firm repurchases.

(2) In what circumstances will a share repurchases result in earnings to fall?

(3) Share repurchases have a “signalling effect” and thereby affect the investor’s view of the

company’s future.

True

False

(4) A company declared a dividend on November 7, payable December 28 to stockholders of record

on Friday December 7. What is the latest date by which a shareholder can purchase the share and still

be eligible to receive the dividend declared?

A) November 3

B) November 4

C) November 5

D) November 6

(5) When a firm return cash to its shareholders. The only way to do so is to pay a dividend.

True

False

(6) Firms repurchase their own shares because:

I. They have accumulated large amount of excess cash

II. They want to change their capital structure

III. They want to substitute it for regular dividends

A) I only

B) II only

C) I and II only

D) III only

(7)Dividend payments alter the capital structure of a firm by replacing equity with debt.

True

False

(8)Share repurchase may indicate undervalued shares.

True

False

(9)Companies that have surplus cash but no positive net present value projects are likely to pay out

these excess funds. Briefly explain the consequences of this statement.

(10)Share repurchases provide companies the flexibility in distribution cash to shareholders.

True

False

NB. No title page, No reference is needed. just to answer the 10 questions. and a very short

explanation.

Click here to request for this assignment help

Solution:

10% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET10 to claim 10% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.