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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. The order line has a back order credit hold.
B. AutoInvoice was not run.
C. Order Management workflow is stuck.
D. The invoice lacks an accounting rule.
E. An AutoInvoice validation error exists.
Answer: A,B,C,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. use the dividend to buy 2% of the stock after receiving the dividend.
B. liquidate 2% of his stock holding after receiving the dividend.
C. none of these answers.
D. liquidate 7% of his stock holding after receiving the dividend.
Answer: C
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.