In a frictionless financial environment, the share price remains unchanged through which of the following dividend policies? ()
A、Cash dividends
B、Stock repurchases
C、Stock splits
D、Stock dividends
A、Cash dividends
B、Stock repurchases
C、Stock splits
D、Stock dividends
B.the quantity demanded at a given price
C.The shift in the demand curve when price changes
D.The demand for a product holding price constant
A、A. Farm machine
B、B. The head of truck
C、C. The part of truck container
D、D. The part of truck to draw or pull container
A、be higher than $20
B、keep at $20
C、be lower than $20
D、depend on the amount of shares be repurchased
A、Retained earnings
B、Accounts payable
C、Accrued wages
D、Issuing bonds
A、Preferred stock is like debt in that there is a contractually specified fixed payment
B、The Preferred dividends must be made before the holders of common stock can be paid anything
C、Failure to pay preferred dividends will trigger a default
D、The holders of preferred stock usually do not get to share the residual value of the firm’s assets with the holders of the common stock
A、the time and effort of the firm’s managers in avoiding bankruptcy
B、fees paid to lawyers specialized in bankruptcy proceedings
C、the loss of customers, suppliers and employees
D、all of the above
There are two firms with identical assets and thus the same EBIT equal to $10 million per year, differing only in their capital structure: Nodett Corp. issuing only 1 million shares of stocks, and Somedett Corp. issuing bonds with face value of $40 million at an interest rate of 8% per year and 0.6 million shares of stocks. Assume that Somedett’s bonds are in perpetuity and default free. In a frictionless environment, if Nodett’s stock price is $90 and Somedett’s stock price is $100, then you can ( ) to make riskless arbitrage profit.
A、buy 1,000 shares of Nodett and sell short 600 shares of Somedett
B、sell short 1,000 shares of Nodett and buy 600 shares of Somedett
C、sell short 600 shares of Somedett, borrowing $40,000 in perpetuity and buy 1,000 shares of Nodett
D、sell short 1,000 shares of Nodett, buy 600 shares of Somedett and bonds of Somedett with total face value of $40,000
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