Dividends Self-Quiz

 

 

 

 

 

 

 

Go Co. has recently undertaken a corporate share repurchase. The shares that the company repurchases from shareholders are known as:
Choice 1 corporate stock.
Choice 2 issued and outstanding stock.
Choice 3 board stock.
Choice 4 treasury stock.
In the question above, Go Co. subsequently becomes the target of a hostile takeover transaction. In response, the board begins to look for ways to help ward off the unwanted suitor. One option that it considers is voting the treasury stock against the buyer’s proposal. Such an action would be:
Choice 1 advisable, as it would gain more voting shares against the transaction.
Choice 2 a good idea, as treasury shares are entitled to two votes per share.
Choice 3 illegal, as treasury shares are not entitled to a vote.
Choice 4 improper, because treasury shares are voted equally, 50% for each side of a transaction.
For what reason would a company make a distribution to shareholders?
Choice 1 to satisfy shareholders that the company is not squandering their money.
Choice 2 to satisfy the market that the corporation favors shareholders.
Choice 3 to decrease the value of shares to improve turnover in share ownership
Choice 4 All of the above.
CashCow Co. is paying a dividend to shareholders. Danny has purchased shares of the company, but is not clear on whether or not he is entitled to receive the dividend. What determines if he is eligible or not?
Choice 1 whether or not he purchased the shares before the record date.
Choice 2 whether or not he purchased the shares after the record date.
Choice 3 whether or not he purchased the shares before the dividend payment date.
Choice 4 whether or not he purchased the shares after the dividend payment date.
A type of stock which affords its owner a set of special rights in the event that the firm goes bankrupt is referred to as:
Choice 1 senior stock.
Choice 2 common stock.
Choice 3 preferred stock.
Choice 4 adjusted stock.
Common stock is always said to have:
Choice 1 unlimited rights as to management and dissolution.
Choice 2 unlimited rights as to voting and distribution.
Choice 3 limited rights as to appraisal and preferences.
Choice 4 limited rights as to suit and liability.

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