« previous next »

Author Question: AFB, Inc.'s dividend policy is to maintain a constant payout ratio. This year AFB, Inc. paid out a ... (Read 90 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
on: Jul 10, 2018
AFB, Inc.'s dividend policy is to maintain a constant payout ratio. This year AFB, Inc. paid out a
  total of 2 million in dividends. Next year, AFB, Inc.'s sales and earnings per share are expected to
  increase. Dividend payments are expected to
 
  A) remain at 2 million.
  B) decrease below 2 million.
  C) increase above 2 million.
  D) increase above 2 million only if the company issues additional shares of common stock.

Question 2

Which of the following statements is true?
 
  A) A low risk portfolio is constructed by selecting low risk stocks.
  B) It is easy to find perfectly negatively correlated stocks.
  C) Low risk portfolios will only reflect unsystematic risk.
  D) Negatively correlated stocks help build a low risk portfolio.
  E) Market risk reduces as more stocks are added to a portfolio.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Ptupou85

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Sample budget spreadsheet form for first year of business. Sample budget spreadsheet form for first year of business.
Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
The year 2010 was the hottest since 1880 The year 2010 was the hottest since 1880
Relative Humidity Changes at Constant Water-Vapor Content Relative Humidity Changes at Constant Water-Vapor Content
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Male to Female Sex Ratio at Birth vs. PCB Concentration in Maternal Serum Male to Female Sex Ratio at Birth vs. PCB Concentration in Maternal Serum
Video: Conduction of action potentials

For a complete list of videos, visit our video library