Author Question: Sinkmaster Corp settled a large lawsuit that caused earnings to be negative for the quarter. This ... (Read 57 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
Sinkmaster Corp settled a large lawsuit that caused earnings to be negative for the quarter. This
  quarterly loss was the first in 22 years. In addition, the company has a record of 48 consecutive
  quarters of dividend payments.
 
  Which of the following is correct?
  A) The clientele effect says that investor choice of investment vehicle is independent of dividend
  policy and therefore the payment/omission of the dividend is immaterial.
  B) The company cannot pay dividends this quarter since the company had no earnings.
  C) The company can use cash generated through prior retention of earnings, or borrowed funds
  to pay the dividend.
  D) The company can omit the dividend; shareholders are always understanding about the
  riskiness of business.

Question 2

You want to buy a Nissan 300Z on your 27th birthday. You have priced these cars and found that they currently sell for 25,000. You believe that the price will increase by 10 percent per year until you are ready to buy.
 
  You can presently invest to earn 14 percent. If you just turned 20 years old, how much must you invest at the end of each of the next 7 years to be able to purchase the Nissan in 7 years?
  A) 8,881.21
  B) 4,540.14
  C) 4,652.18
  D) 4,239.56
  E) 5,072.09


scottmt

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

For a complete list of videos, visit our video library