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NEW QUESTION: 1
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
NEW QUESTION: 2
The customer service department identified an order that was shipped and not invoiced. Identify four potential causes for this occurring. (Choose four.)
A. An AutoInvoice validation error exists.
B. AutoInvoice was not run.
C. The invoice lacks an accounting rule.
D. Order Management workflow is stuck.
E. The order line has a back order credit hold.
Answer: A,B,D,E
NEW QUESTION: 3
Assume that all the assumptions of Modigliani and Miller hold. In particular, there are no taxes and transaction costs. A firm has a policy of paying out 5% of the stock price as dividends. However, an investor would like to receive a 7% dividend. For this, he should:
A. liquidate 7% of his stock holding after receiving the dividend.
B. none of these answers.
C. liquidate 2% of his stock holding after receiving the dividend.
D. use the dividend to buy 2% of the stock after receiving the dividend.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Suppose the investor is holding stocks worth $100. The company then pays $5 as dividends. When the dividend is paid out, the stock price falls to $95 (in the absence of tax effects, as assumed). To increase his income to $7, the investor must sell off stocks worth $2. This corresponds to 2/95 = 2.105% of the post dividend stock holding.