Author Question: A corporation has been paying out 1 million per year in dividends for the past several years. This ... (Read 94 times)

FButt

  • Hero Member
  • *****
  • Posts: 519
A corporation has been paying out 1 million per year in dividends for the past several years. This
  year, the company wants to pay the 1 million dividend, but can't.
 
  All of the following are reasons
  the company cannot continue its dividend payment policy EXCEPT
  A) the company's retained earnings balance at the end of the year is less than 1 million.
  B) the company's cash balance is less than 1 million.
  C) the company's net income this year is less than 1 million.
  D) the company's liabilities exceed its assets.

Question 2

A project's contribution-to-firm risk does allow for diversification within the firm.
 
  Indicate whether the statement is true or false


mjbamaung

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

C

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

For a complete list of videos, visit our video library