Chapter 14 Questions: Topic: DIVIDENDS 1. Payments made out of a firm ’s earnings to its owners in the form of cash or stock are called: A) Dividends. B) Distributions. C) Share repurchases. D) Payments-in-kind. E) Stock splits. Answer: A Topic: REGULAR CASH DIVIDENDS 2. A cash payment made by a firm to its owners in the normal course of business is called a: A) Share repurchase. B) Liquidating dividend. C) Regular cash dividend. D) Special dividend.
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Topic 1: Principles in Finance and Valuation Learning Outcomes what is finance? principles in finance application: valuation Topic 1: Principles in Finance and Valuation M K Lai Page 2 What is Finance? N = the date when you are called to answer to God face-to-face now 1 N-1 2 N N-1 … initial wealth income income income income income consumption consumption consumption consumption consumption consumption How to allocate your initial wealth and future income to consumption over time
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expected return on a security or a portfolio equals the rate on a risk-free security plus a risk premium” (Heshmat‚ 2012‚ p. 504). It further states that the expected return of an asset has a positive linear correlation with a security of a non-diversifiable risk i.e. beta (Heshmat‚ 2012). Further‚ Ushad (2011) argue that CAPM is majorly based on the assumption that higher returns are linked with the higher beta values. Therefore‚ years after the publication of the
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FIN 534 – Homework Chapter 7 1. The preemptive right is important to shareholders because it? Answer c. protects the current shareholders against a dilution of their ownership interests. 2. Companies can issue different classes of common stock. Which of the following statements concerning stock classes is CORRECT? Answer d. Some class or classes of common stock are entitled to more votes per share than other classes. 3. Which of the following statements is CORRECT? Answer e. The
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Corporate Research Paper – BMW Group Introduction Bayersiche Motoren Werke Group (BMW Group) is a German company whose operations are “focused on the premium segments of the international automobile markets (BMW Group)”. BMW Group was founded in 1916 and established its main plant and headquarters in Munich‚ Germany just after World War I in 1922. Those facilities exist as BMW’s headquarters and flagship plant to this day (BMW Group). BMW Group coordinates its activities in more than 150 countries
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measured by its standard deviation. ____ 2. The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly. ____ 3. An individual stock’s diversifiable risk‚ which is measured by the stock’s beta‚ can be lowered by adding more stocks to the portfolio in which the stock is held. ____ 4. A firm can change its beta through managerial decisions‚ including capital budgeting and capital structure
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stock‚ and retained earnings. D) long-term debt‚ common stock‚ preferred stock‚ and retained earnings. 2. The relevant portion of an asset’s risk attributable to market factors that affect all firms is called A) unsystematic risk. B) diversifiable risk. C) systematic risk. D) None of the above. 3. Why is maximizing shareholder wealth a better goal than maximizing profits? A) Maximizing shareholder wealth places greater emphasis on the short term. B) Maximizing profits ignores
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maintains the contracts‚ she is then considered a: (Points : 1) Speculator Arbitrager Hedger None of the above | 4. What kind of risk does not disappear when spread across many investors? (Points : 1) Diversifiable Catastrophic Predictive Nondiversifiable | 5. Who from the following list would be considered a speculator by entering into a futures or options contract on commodities?(Points : 1) Corn delivery truck driver
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I. Presentation of the firm and its business operations History : Groupon is a deal-of-the day website created in 2007 by Andrew Mason and it’s based on the concept of group purchase. Groupon became ‘Groupon City deal’ by acquiring the company ‘City deal’‚ which was a copy of the concept of Groupon in Europe. The firm is located in more than 40 countries in the world. Description : The concept is very simple ; indeed‚ it gives the opportunity to the customers to take advantage of strong discount
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Master of business administration-MBA Semester 4 Project Management Specialisation PM0016-Project Risk Management (4 credits) (Book ID:B1345) Q1. Write a note on process maturity model. Process Maturity Models continue to enjoy quite a bit of popularity. Indeed‚ there are more maturity models every day. There are not only maturity models for processes‚ but for business rules‚ SOA‚ software integration‚ project management and a variety of other topics. In this Spotlight‚ we are only going to
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