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Exam (elaborations)

FINANCE

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What does the residual dividend model mean for a company? It helps a company attract investors who seek a high dividend payout ratio. It prioritizes the company's growth over shareholder dividends. It helps a company attract investors who seek a low dividend payout ratio. It allows a company to...

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  • October 6, 2023
  • 15
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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8/21/2020 Sophia :: Welcome




Score 21/23




You passed this Milestone
21 questions were answered correctly.
UNIT 4 — MILESTONE 4
2 questions were answered incorrectly.
1

Farrah owns 500 shares of stock valued at $30/share in Company A.

After the company issues a 3% stock dividend, what does Farrah own?



500 shares valued at $30.90/share



500 shares valued at $30/share



515 shares valued at $29.13/share



515 shares valued at $30/share
https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 1/15

, 8/21/2020 Sophia :: Welcome

CONCEPT
Cash Dividend Alternatives
2

What does the residual dividend model mean for a company?



It helps a company attract investors who seek a high dividend payout ratio.



It prioritizes the company's growth over shareholder dividends.



It helps a company attract investors who seek a low dividend payout ratio.



It allows a company to maintain a consistent dividend yield.

CONCEPT
Setting the Dividend
3

Which inventory technique assumes that the most recently purchased inventory is sold first?



FIFO



ABC





https://www.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/5811085 2/15

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