Bavarian Brew shows the following shareholder's equity account:
Ordinary shares at par €5,000,000 Paid in capital in excess of par €8,000,000 Retained Earnings €23,000,000
What is the maximum amount of dividends that the company can pay in cash dividends if it is headquartered in a US state where capital is defined as the par value of ordinary shares plus paid in capital in excess of par?
€8,000,000
€31,000,000
€23,000,000
€13,000,000
The market's reaction to the announcement to a change in the firm's dividend policy is explained by which model of dividends?
Signalling model.
Agency cost model.
Irrelevance of dividends model.
None of the above.
Bavarian Brew shows the following shareholder's equity account:
Ordinary shares at par €5,000,000 Paid in capital in excess of par €8,000,000 Retained Earnings €23,000,000
What is the maximum amount of dividends that the company can pay in cash dividends if it is headquartered in a US state where capital is defined as the par value of ordinary shares?
€8,000,000
€31,000,000
€23,000,000
€13,000,000
The date on which the company mails out its declared dividend is called the:
ex-dividend date.
payment date.
date or record.
announcement date.
You own shares in a company that has 2 million shares outstanding. The current share price is €12. If the company does a 4-3 stock split, what would you expect the share price to be after the split?
€12
€16
€9
€10
Bavarian Brew earned €3.25 per share in the last fiscal year. The company expects to earn €4.50 per share next year. If Bavarian Brew follows a policy of paying out 35% of its earnings as dividends to their shareholders, what was the company's dividend payment in the last fiscal year?
€1.75
€1.14
€2.44
€3.25
A payment made by a firm made in the form of new shares of stock, rather than cash, is called a:
cash dividend.
stock dividend.
special dividend.
liquidating dividend.
You currently hold 100 shares of Bavarian Sausage, Ltd which you purchased three months ago at €12 and which is currently trading at €16. The shares will pay a €1.28 dividend in a few days and the ex-dividend day is tomorrow. Your personal tax rate on dividend income is 30% and the capital gains tax is 18%. Calculate the after-tax return you will earn if you sell the shares today for €16..
33.33%
27.33%
25.00%
20.50%
Bavarian Brew had after tax earnings of €2,500,000 in 2004. The company needs €2,500,000 for new investments and plans to finance 60% of those investments with debt. If Bavarian Brew follows a residual dividend policy, what total dividend will be paid?
€2,500,000
€1,000,000
€1,500,000
€2,250,000
When a firm is short of cash yet it wishes to distribute something to shareholders, it should consider a: