Fin test 3 sec #1

Card Set Information

Author:
abifulco
ID:
53892
Filename:
Fin test 3 sec #1
Updated:
2010-12-06 21:38:39
Tags:
dividends sec
Folders:

Description:
fin test 3 dividends section #1
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user abifulco on FreezingBlue Flashcards. What would you like to do?


  1. what are dividends?
    they're distribution from the firm's assets to the shareholders
  2. firms aren't obligated to
    pay dividends or maintain a consistent policy with regard to dividends
  3. dividends could be paid in
    cash or stocks
  4. a firms dividend policy includes two components:
    dividend payout ratio and stability of dividends over time
  5. dividend payout ratio
    indicates amount of dividend paid relative to the company's earnings (i.e. dividends per share is $1 and earnings per share is $2,ratio is 50% (1/2)
  6. decision to pay a large dividend means:
    retaining less of the firm's profits and firm relies more on external equity financing

What would you like to do?

Home > Flashcards > Print Preview