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Author Question: Mega Corp. just raised its quarterly dividend from $0.45 per share to $0.475. On the day of the ... (Read 59 times)

vHAUNG6011

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on: Apr 25, 2021

Question 1

Lazy Lightning Power Corp. manufactures, distributes, and services automotive parts and engines worldwide. Lazy's income statement for the year just ending is shown below. What was Lazy Lightning's dividend payout rate?


◦ 12.79%
◦ 13.07%
◦ 14.80%
◦ 17.50%
◦ 19.55%

Question 2

Mega Corp. just raised its quarterly dividend from $0.45 per share to $0.475. On the day of the announcement, the company's stock price rose by $2 from $50 to $52. Which of the following is NOT a good reason for the stock price increase?
◦ Mega's recent earnings had been increasing and the market inferred from the dividend that the earnings increases would not be reversed.
◦ The CEO of Mega is a big spender and the market inferred that the dividend increase would reduce his wasteful spending by reducing free cash flow.
◦ The market inferred that Mega's future sustainable earnings would be higher than it previously thought.
◦ The higher dividends increased the dividend tax shields.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by vHAUNG6011 on Apr 25, 2021

okolip

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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vHAUNG6011

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Reply 2 on: Apr 25, 2021
:D TYSM

JaynaD87

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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