投资学英文版课件problem ch05

PAGE2PAGE3PAGE1Chapter5InvestinginCommonStockTRUE/FALSE1.Therelationshipbetweenafirmanditsstateofincorporationisspecifiedinthebylaws.2.Stockholdersinapubliclyheldcorporationhavelimitedliability.3.Bothcorporateearningsandcashdividendsreceivedbystockholdersaretaxedbythefederalgovernment.4.Moststockholdershavecumulativevotingrights.5.Ifafirmoperatesataloss,itsretainedearningsaredecreased.6.Moststockholdersofpubliclyheldstockhavepreemptiverights.7.Increasesinthemarketvalueofastockgeneratecapitalgainswhenthestockissold.8.Ifacumulativepreferredstockpaysadividend,itissaidtobeinarrears.9.Preferredstockpaysafixedamountofinterest.10.Preferredstockdividendsareusuallycumulative.11.Thepayoutratioisdividendsdividedbyearnings.12.Dividendincreasesusuallyoccurpriortoanincreaseinearnings.13.Theexdividenddatefollowsthedateofrecord.14.Managementsareoftenreluctanttoreducedividendsbecausereductionsmaybeviewedasindicatingfinancialweakness.15.Ifaninvestorbuysstockontheexdividenddate,thatindividualwillnotreceivethedividend.16.Thepriceofastockgenerallyadjustsdownwardforthedistributionofdividends.17.Stockdividendsincreasethefirm'scash.18.Atwoforonestocksplitdoublesthenumberofsharesandtheirprice.19.Stocksplitsandstockdividendsincreasetheearningcapacityofthefirm.20.Aonefortworeversesplitincreasesthepriceofthestock.21.Dividendreinvestmentplansareameanstopostponefederalincometaxondividends(asof2004).22.Amajoradvantageassociatedwithdividendreinvestmentplansisforcedsaving.MULTIPLECHOICE1.Advantagesofthecorporateformofbusinessincludea.limitedliabilityforstockholdersb.avoidanceofstatetaxationc.limitedlifed.deductibilityofdividends2.Stockholdersgenerallyhavewhichofthefollowingrights?1.righttovote2.righttoshareinthefirm'searnings3.righttosellthestocka. 1and2b.1and3c.2and33.Cumulativevotingpermitsastockholderto a.collectextradividends b.voteallthesharesforoneindividual c.castthetotalnumberofvotesforoneindividual d.votebyproxy4.Earningsarea.retainedb. distributedc. investedd.retainedand/ordistributed5. Preemptiverightspermitstockholderstoa. collectdividendsbeforetheyarereinvestedb. participateindividendreinvestmentplansc. maintaintheproportionateshareofownershipd. votetheirshares6.Preferredstockgenerallypaysa.avariabledividendb.afixeddividendc.astockdividendd.nodividend7.Cashdividends1.arepaidfromearnings2.increasethecapacityofthefirmtogrow3.reducethefirm'sassetsa.1and2b.1and3c.2and38.Theprocedureforthedistributionofdividendsdoesnotincludea.theexdividenddateb.thedateofrecordc.thesettlementdated.declarationdate9.Stockdividendscausea.thepriceofashareofstocktoriseb.thepriceofashareofstocktofallc.thevalueofthefirmtorised.thevalueofthefirmtofall10.Whichofthefollowingoc