Dividend

Get help with your Dividend homework. Access the answers to hundreds of Dividend questions that are explained in a way that's easy for you to understand. Can't find the question you're looking for? Go ahead and submit it to our experts to be answered.

Study tools on Study.com
27,000 + Video Lessons
920,000+ Questions and Answers
65,000+ Quizzes

Dividend Questions and Answers

Test your understanding with practice problems and step-by-step solutions. Browse through all study tools.

Dave's Lumber earned $120 million last year and retained $72 million. What is his payout ratio?
John is considering purchasing some preferred stock from BBCC Corp. The company pays a $30 annual dividend on its preferred stock, and John believes he should earn 7% on the stock, based on the com...
Is it possible to have a negative dollar amount of dividends received for owning stock during the year?
Frick Company has 100,000 shares of common stock outstanding. On April 15, the board declared a $.30 dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15....
Hall Marks just paid a $2.90 per share dividend yesterday (that is, D0 = $2.90). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 1...
Miller Corporation just paid a dividend of $1.25 a share (that is, D0 = $1.25). The dividend is expected to grow 10% a year for the next 3 years and then at 6% a year thereafter. What is the expect...
At December 31, 2005 and 2006, C Corp. had outstanding 4,000 shares of $100 par value, 6 percent cumulative preferred stock and 20,000 shares of $10 par value common stock. At December 31, 2005, di...
Dividends are a(n) a. expense b. distribution to owners c. asset d. increase in equity
If you were a CFO considering implementation of a dividend payout policy, which factors would influence your implementation plan?
Suppose that you live in a country where it takes 10 days to settle a stock purchase. By how many days will the ex-dividend date precede the record date?
Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax consequences to Brittany? b. What are the tax consequences to Ridge if h...
The following data shows the stockholders' equity of TVX Company at the beginning of the day on February 5: On February 5, the directors declare a 10% stock dividend distributable on February 28 to...
York's outstanding stock consists of 15,000 shares of noncumulative 9.30% preferred stock with a $10 par value and also 37,500 shares of common stock with a $1 par value. During its first four year...
What is the process of estimating the dividends and earnings that can be expected from the firm based on the determinants of value?
The Judy Corporation was incorporated on September 1, 2012 (thus their fiscal year begins on September 1st of the year and ends on August 31 each year). The Judy Corporation issued the following st...
Bowles Sporting Inc. is prepared to report the following 2014 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual...
Are investors and speculators simply benefitting from the work of others, or are their activities necessary to the system of production? Explain your position.
Abigail Corporation receives a $20,000 dividend from Luke Corporation, a domestic corporation owned 50% by Abigail Corporation. What is the book tax difference associated with the dividends receive...
Fay is a new tax preparer. She has been researching various types of nontaxable distributions. Which of the following statements is incorrect? a) A return of capital reported on form 1099-DIV will...
At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $1.10 per share for holder of record on Monday, July 10. The firm has 300,000 share of common stock outstanding and has set...
Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, but investor...
From the perspective of a senior business executive, are cash dividends paid to shareholders good or bad, or both good and bad? How did you come to this conclusion?
A column in the Wall Street Journal observes that while many people buy stocks in the hope of scoring profits down the road, dividends deliver cash right now. If stockholders desire dividends, why...
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2013 and 2014 2013 2014 2013 2014 Assets Liabilities and Owners' Equity...
The equity sections from Atticus Group's 2015 and 2016 year-end balance sheets follow. Stockholders' Equity (December 31, 2015) Common stock_$6 par value, 50,000 shares authorized, 35,000 shares...
Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. a. Absent...
Planetary Travel Co. has $128,000,000 in stockholders' equity. Common stock is $50,000,000 and the balance is retained earnings. The firm has $280,000,000 in total assets and 4% of this value is in...
The Western Pipe Company has the following capital section in its balance sheet: Its stock is currently selling for $6 per share. The firm intends to first declare a 15 per cent stock dividend and th
The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 25,000 shares of stock outstanding. Market Value Balance Sheet Cash $156,000 Fixed assets $540,750 Equity $696...
The owner's equity accounts for Hexagon International are shown here: Common stock ($.40 par value $ 25 , 000 Capital surplus 300 , 000 Retained earnings 668 , 120 Total owners' equity $ 993 , 120...
The Featherstone Corp. has $5 million in cash for its next dividend but is considering a repurchase instead. Featherstone has 10 million shares outstanding, currently selling at $40 per share. The...
Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are a...
The records of Hoffman Company reflected the following balances in the shareholders' equity accounts at December 21, 2011: - Common shares, par $13 per share, 34,000 shares outstanding - Preferre...
Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. a. Absent...
Why might a stock dividend or a stock split be of limited value to an investor? What about a stock repurchase? Does it make sense for a corporation to repurchase its own stock?
The charter of a corporation provides for the issuance of 98,116 shares of common stock. Assume that 37,619 shares were originally issued and 3,878 were subsequently reacquired. What is the amount...
Walsh Company is considering three independent projects, each of which requires a $3 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are prese...
J&V expects a net income of $200,000 next year. The projected capital investment includes the purchase of a new machine at $120,000. J&V would like to keep their targeted capital structure of 30% d...
Which of the following statements is true or false? A. The dividend discount model values the stock based on a forecast of the future dividends paid to shareholders. B. A common approximation is...
You are interested in purchasing enough number of shares in SMITH Chemical Inc. so that you can be guaranteed a seat on the board of directors when the next annual shareholder?s meeting is held. SM...
If a company announces a change in its dividend policy from a zero target payout ratio to a 100% payout policy, this action could be expected to increase the value of long-term options (say 5-year...
FORco wants to open a sales office in the United States. Because FORco does not want to be subject to any withholding tax on dividends, FORco does not forFORco wants to open a sales office in the U...
Matt Schmidt Company's ledger shows the following balances on December 31, 2014. 4% Preferred Stock - $10 par value, outstanding 20,200 shares - $ 202,000 ; Common Stock - $100 par value, outstandi...
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $35 per share. What effects on the equity accounts will the dis...
Eakins Inc.'s common stock currently sells for $55.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant gro...
Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 2%. Last year's dividend was $3.00 per share. The company will be in business for 40 years with no liquid...
Company DELTA has just paid a dividend of $1.15. The required rate of return on the stock is 13.4% and investors expect the dividend to grow at a constant rate of 8% in the future. A) Calculate the...
Four years ago, Bling Diamond, Inc., paid a dividend of $2.15 per share. The firm paid a dividend of $2.57 per share yesterday. Dividends will grow over the next five years at the same rate they gr...
Thelma and Louie, Inc. started the year with a balance of retained earnings of $545 million and ended the year with retained earnings of $590 million. The company paid dividends of $35 million to t...
Texas Tools Inc. has $20 million in earnings, pays $2.75 million in interest to bondholders, and pays $1.80 million in dividends to preferred stockholders. a) What are the common stockholders' resi...
In the firm's most recent financial statements, Newhouse, inc. reported 57 mil usd of ni and 808 mil usd of retained earnings. The previous retained earnings were 779.000 mil usd. How much, in divi...
You own 230 shares of stock in Halestorm, Inc., that currently sells for $83.20 per share. The company has announced a dividend of $3.30 per share with an ex-dividend date of February 4. Assuming n...
The stock of Red's Hardware closed at $56.35 per share today. Tomorrow morning, the stock goes ex-dividend, paying a dividend of $1.55 per share. The tax rate on dividends is 10%. All else the same...
Energetic Engines is trying to estimate its cost bonds that pay $20 interest every six months. Each bond, which has a $1,000 face value and matures in six years, is currently selling for $900. Esti...
On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholder...
Why would a company pay out dividends, when they could be reinvesting, and are there alternatives to paying out cash?
On January 1, Gull Corporation (a calendar year taxpayer) has accumulated E & P of $200,000. During the year 2009, Gull incurs a net loss of $300,000 from operations that accrues ratably. For year...
Shares are issued at 95% of the closing ASX share price on the day in which the dividend is declared. On the 15th June 20X1, the company determined a final dividend of 4.0 cents per ordinary share....
The books of Conchita Corporation carried the following account balances as of December 31, 2014. Cash $200,800 Preferred Stock (6% cumulative, nonparticiparting, $50 par) 297,000 Common Stock (no...
A portion of the Stockholders' Equity section of Hatten Corporation's balance sheet as of December 31, 2016, appears below. Dividends have not been paid for the years 2014 and 2015. There has been...
Create an account to browse all assets today
Support