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Author Question: A corporation has been paying out 1 million per year in dividends for the past several years. This ... (Read 116 times)

FButt

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on: Jul 10, 2018
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
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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mjbamaung

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Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

TRUE


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FButt

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Reply #2 on: Jul 10, 2018
Thank you


mjbamaung

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Reply #3 on: Jul 10, 2018
No problemo


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