The second part of a final exam on financial management.
Leo Bailey
Contributor
4.8
30
7 months ago
Preview (4 of 10 Pages)
100%
Purchase to unlock
Page 1
Loading page ...
FIN 534 FINAL EXAM PART 2 ONLYQuestion 1Which of the following is NOT normally regarded as being a barrier to hostile takeovers?AnswerTargeted share repurchases.Shareholder rights provisions.Restricted voting rights.Poison pills.Abnormally high executive compensation.Question 2Which of the following is NOT normally regarded as being a good reason to establish an ESOP?AnswerTo enable the firm to borrow at a below-market interest rate.To make it easier to grant stock options to employees.To help prevent a hostile takeover.To help retain valued employees.To increase worker productivity.Question 3Rohter Galeano Inc. is considering how to set its dividend policy. It has a capital budget of$3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85%equity. The company forecasts that its net income this year will be $3,500,000. If the companyfollows a residual dividend policy, what will be its total dividend payment?Answer$205,000$500,000$950,000$2,550,000$3,050,000Question 4If a firm adheres strictly to the residual dividend policy, the issuance of new common stockwould suggest thatAnswerthe dividend payout ratio is increasing.no dividends were paid during the year.the dividend payout ratio is decreasing.the dollar amount of investments has decreased.the dividend payout ratio has remained constant.Question 5Which of the following statements is correct?
Page 2
Page 3
Page 4
Preview Mode
This document has 10 pages. Sign in to access the full document!