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Match the Following with the Items Below

Question 105

Matching

Match the following with the items below

Premises:

Responses:

Assumes that dividends provide valuable data as to economic expectations for the company.

dividend information content

Plans that provide the investor with an opportunity to buy additional shares of stock with the cash dividends paid by the company.

dividend yield

The percentage of dividends to earnings after taxes.

dividend payment date

Stockholders owning the stock on this date are entitled to receive a dividend.

holder-of-record date

The date a stockholder will receive a dividend.

dividend payout

Dividends per share divided by market price per share.

marginal principle of retained earnings

A determinant of dividend policy that changes in a relatively predictable way over time.

dividend reinvestment plans

Taxes on increases in value from holding assets.

life cycle

On this date the purchase of the stock no longer carries with it the right to receive the dividend previously declared.

capital gains taxes

Presumes that companies undertake projects which earn more than investors can earn elsewhere, with the remainder distributed as dividends.

ex-dividend date

Premises:

Assumes that dividends provide valuable data as to economic expectations for the company.

Plans that provide the investor with an opportunity to buy additional shares of stock with the cash dividends paid by the company.

The percentage of dividends to earnings after taxes.

Stockholders owning the stock on this date are entitled to receive a dividend.

The date a stockholder will receive a dividend.

Dividends per share divided by market price per share.

A determinant of dividend policy that changes in a relatively predictable way over time.

Taxes on increases in value from holding assets.

On this date the purchase of the stock no longer carries with it the right to receive the dividend previously declared.

Presumes that companies undertake projects which earn more than investors can earn elsewhere, with the remainder distributed as dividends.

Responses:

dividend information content

dividend yield

dividend payment date

holder-of-record date

dividend payout

marginal principle of retained earnings

dividend reinvestment plans

life cycle

capital gains taxes

ex-dividend date

Correct Answer:

Premises:

Responses:

Assumes that dividends provide valuable data as to economic expectations for the company.

Plans that provide the investor with an opportunity to buy additional shares of stock with the cash dividends paid by the company.

The percentage of dividends to earnings after taxes.

Stockholders owning the stock on this date are entitled to receive a dividend.

The date a stockholder will receive a dividend.

Dividends per share divided by market price per share.

A determinant of dividend policy that changes in a relatively predictable way over time.

Taxes on increases in value from holding assets.

On this date the purchase of the stock no longer carries with it the right to receive the dividend previously declared.

Presumes that companies undertake projects which earn more than investors can earn elsewhere, with the remainder distributed as dividends.