If ABC Corp is profitable,
a. it must pay dividends to its stockholders
b. pretax profits are either paid as dividends or reinvested in the corporation
c. after-tax profits are either paid as dividends or reinvested in the corporation
d. it is contractually obligated to retain a portion of its earnings
e. it typically uses the profits to buy back its own stock from the underwriter
Question 2
If the U.S. dollar depreciates relative to the Swiss franc, then
a. Swiss goods become more expensive in the U.S.
b. U.S. goods become more expensive in Switzerland
c. Swiss investors will pay more Swiss francs to buy each U.S. dollar
d. the U.S. will import more from Switzerland
e. the U.S. dollar-Swiss franc exchange rate will decrease
