FIN 534 EXAM PART 2

Jun 27th, 2016
Studypool Tutor
Price: $20 USD

Tutor description

1. Which of the following is NOT normally regarded as being a barrier to hostile takeovers? Answer Targeted share repurchases. Shareholder rights provisions. Restricted voting rights. Poison pills. Abnormally high executive compensation. 2. Which of the following is NOT normally regarded as being a good reason to establish an ESOP? Answer To 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. 3. Which of the following statements is correct? Answer If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not follow the strict residual dividend policy. If a firm follows a strict residual dividend policy, then, holding all else constant, its dividend payout ratio will tend to rise whenever the firm's investment opport

Word Count: 2794
Showing Page: 1/10
FIN 534 EXAM PART 21. Which 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.2. Which of the following is NOT normally regarded as being a good reason to establish anESOP?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.3. Which of the following statements is correct?AnswerIf a company has an established clientele of investors who prefer a high dividend payout, and ifmanagement wants to keep stockholders happy, it should not follow the strict residual dividendpolicy.If a firm follows a strict residual dividend policy, then, holding all else constant, its dividendpayout ratio will tend to rise whenever the firm's investment opportunities improve.If Congress eliminates taxes on capital gains but leaves the personal tax rate on dividendsunchanged, this would motivate companies to increase their dividend payout ratios.Despite its drawbacks, following the residual dividend policy will tend to stabilize actual cashdividends, and this will make it easier for firms to attract a clientele that prefers high dividends,such as retirees.One advantage of dividend reinvestment plans is that they enable investors to avoid payi

Review from student

Studypool Student
" The best tutor out there!!!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors