Author Question: Sinkmaster Corp settled a large lawsuit that caused earnings to be negative for the quarter. This ... (Read 71 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?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

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?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

For a complete list of videos, visit our video library