Quick Mart has been paying a quarterly dividend of $1.20 a share.Which of the following are valid reasons for the firm to reduce or eliminate these dividends? I.The firm is on the verge of violating a bond restriction.
II) The firm wants to save cash for an acquisition with a 40 percent premium.
III) The firm can raise new capital easily at a very low cost.
IV) Congress just changed the tax laws eliminating all taxes on capital gains.
A) I and IV only
B) II and IV only
C) II,III,and IV only
D) I,II,and IV only
E) I,II,III,and IV
Correct Answer:
Verified
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