8/21/2020 Sophia :: Welcome
Score 21/23
You passed this Milestone
21 questions were answered correctly.
UNIT 4 — MILESTONE 4
2 questions were answered incorrectly.
1
Farrah owns 500 shares of stock valued at $30/share in Company A.
After the company issues a 3% stock dividend, what does Farrah own?
500 shares valued at $30.90/share
500 shares valued at $30/share
515 shares valued at $29.13/share
515 shares valued at $30/share
https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 1/15
, 8/21/2020 Sophia :: Welcome
CONCEPT
Cash Dividend Alternatives
2
What does the residual dividend model mean for a company?
It helps a company attract investors who seek a high dividend payout ratio.
It prioritizes the company's growth over shareholder dividends.
It helps a company attract investors who seek a low dividend payout ratio.
It allows a company to maintain a consistent dividend yield.
CONCEPT
Setting the Dividend
3
Which inventory technique assumes that the most recently purchased inventory is sold first?
FIFO
ABC
https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 2/15
Score 21/23
You passed this Milestone
21 questions were answered correctly.
UNIT 4 — MILESTONE 4
2 questions were answered incorrectly.
1
Farrah owns 500 shares of stock valued at $30/share in Company A.
After the company issues a 3% stock dividend, what does Farrah own?
500 shares valued at $30.90/share
500 shares valued at $30/share
515 shares valued at $29.13/share
515 shares valued at $30/share
https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 1/15
, 8/21/2020 Sophia :: Welcome
CONCEPT
Cash Dividend Alternatives
2
What does the residual dividend model mean for a company?
It helps a company attract investors who seek a high dividend payout ratio.
It prioritizes the company's growth over shareholder dividends.
It helps a company attract investors who seek a low dividend payout ratio.
It allows a company to maintain a consistent dividend yield.
CONCEPT
Setting the Dividend
3
Which inventory technique assumes that the most recently purchased inventory is sold first?
FIFO
ABC
https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 2/15
