9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
Chapterm1
7 m DividendsmandmPayout m
Policy
Multiple mChoice mQuestions
1. Greenm Roofm Motelsmhasmmorem cashm onm handm thanmitsm operationsm requir
e.m Thus,m them firmm hasm decidedmtompaym outm somem ofm itsm earningsminmthe
m formm ofm cashm tom itsm shareholders.mWhatm arem these mpaymentsmtom share
holdersm called?
A. dividends
B. stockm payments
C. repurchases
D. payments-in-kind
E. stockmsplits
about:blank 1/200
,9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
2. Lester'sm Frozenm Foodsm justm paidm outm$0.50m am sharem tom itsm shareholders.m T
hemcashm formthesempaymentsmcamem fromm am largem salem ofm assets,m notm fro
mm anymearningsm ofm the m firm.mWhatm arem these mpaymentsmtom shareholder
sm called?
A. dividends
B. distributions
C. repurchases
D. payments-in-kind
E. stockmsplits
3. Am $0.60m quarterlym cashmpaymentm paidm bym T.L.mJonesm&m Co.m tom itsm shareh
oldersm inm the m normal m course m ofm businessm ism calledm a:
A. repurchase.
B. liquidatingm dividend.
C. regularm cashm dividend.
D. special m dividend.
E. extram cashmdividend.
about:blank 2/200
,9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
4. The m boardmofm directorsmofmWilsonmSportingmEquipment mmetmthismafterno
onm andm passedmamresolutionm tompaymam cashmdividendmofm$0.42 mamshare
m next m month.m In m relation mtom thism dividend, mtodaymismreferredm to masm wh
ichm one m ofm the m followingm dates?
A. decision m date
B. date-of-record
C. declaration mdate
D. payment m date
E. ex-dividend m date
5. The m ex-dividend m date m ism defined m asm
businessmday(s)mbefore mthe mdate
mofm record.
A.m 1
B.m 2
C.m 3
D.m 5
E.m 1
0
about:blank 3/200
, 9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
6. Whichm onemofmthe mfollowingmdatesmism usedmtomdeterminemthe m n
amesm ofm shareholdersm whomwillmreceive mam dividend m payment?
A. ex-
rightsm d
ate
B. ex-
dividendm d
ate
C. date m o
fm reco
rd
D. date m of
m payme
nt
E. declaration
m date
about:blank 4/200
M mChapter m17
Chapterm1
7 m DividendsmandmPayout m
Policy
Multiple mChoice mQuestions
1. Greenm Roofm Motelsmhasmmorem cashm onm handm thanmitsm operationsm requir
e.m Thus,m them firmm hasm decidedmtompaym outm somem ofm itsm earningsminmthe
m formm ofm cashm tom itsm shareholders.mWhatm arem these mpaymentsmtom share
holdersm called?
A. dividends
B. stockm payments
C. repurchases
D. payments-in-kind
E. stockmsplits
about:blank 1/200
,9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
2. Lester'sm Frozenm Foodsm justm paidm outm$0.50m am sharem tom itsm shareholders.m T
hemcashm formthesempaymentsmcamem fromm am largem salem ofm assets,m notm fro
mm anymearningsm ofm the m firm.mWhatm arem these mpaymentsmtom shareholder
sm called?
A. dividends
B. distributions
C. repurchases
D. payments-in-kind
E. stockmsplits
3. Am $0.60m quarterlym cashmpaymentm paidm bym T.L.mJonesm&m Co.m tom itsm shareh
oldersm inm the m normal m course m ofm businessm ism calledm a:
A. repurchase.
B. liquidatingm dividend.
C. regularm cashm dividend.
D. special m dividend.
E. extram cashmdividend.
about:blank 2/200
,9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
4. The m boardmofm directorsmofmWilsonmSportingmEquipment mmetmthismafterno
onm andm passedmamresolutionm tompaymam cashmdividendmofm$0.42 mamshare
m next m month.m In m relation mtom thism dividend, mtodaymismreferredm to masm wh
ichm one m ofm the m followingm dates?
A. decision m date
B. date-of-record
C. declaration mdate
D. payment m date
E. ex-dividend m date
5. The m ex-dividend m date m ism defined m asm
businessmday(s)mbefore mthe mdate
mofm record.
A.m 1
B.m 2
C.m 3
D.m 5
E.m 1
0
about:blank 3/200
, 9/3/23,m9:10mA Chap017m- mTestmBank m-
M mChapter m17
6. Whichm onemofmthe mfollowingmdatesmism usedmtomdeterminemthe m n
amesm ofm shareholdersm whomwillmreceive mam dividend m payment?
A. ex-
rightsm d
ate
B. ex-
dividendm d
ate
C. date m o
fm reco
rd
D. date m of
m payme
nt
E. declaration
m date
about:blank 4/200
