Chapter 14Dividends and Dividend Policy Multiple Choice Questions 1. Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders? A. InterestB. DistributionC. Retained earningsD. DividendE. Stock repurchase 2. Which one of the following is a payment by a firm to its shareholders from any source other than current or accumulated retained earnings? A. InterestB. DistributionC. Retained earningsD. DividendE. Stock repurchase 3. Which one of the following best defines a regular cash dividend? A. Distribution by a firm to its shareholdersB. Payment from any source by a firm to its ownersC. One-time payment of cash by a firm to its shareholdersD. Cash payment by a firm to its owners as part of a firm's normal operationsE. Distribution of the proceeds from the sale of a portion of a firm's operations 4. Which one of the following is the date on which the board of directors agrees to pay a dividend and passes a resolution to do so? A. Date of recordB. Ex-dividend dateC. Payment dateD. Declaration dateE. Public announcement date 5. The ex-dividend date is defined as _____ day(s) before the date of record. A. three businessB. threeC. two businessD. twoE. one 6. On which one of the following dates is the determination made as to which shareholders will receive a dividend payment? A. Date of recordB. Ex-dividend dateC. Payment dateD. Declaration dateE. Public announcement date 7. On which one of the following dates are dividend checks mailed? A. Date of recordB. Ex-dividend dateC. Payment dateD. Declaration dateE. Public announcement date 8. The clientele effect states that investors fall into various groups because of differences in...
