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Which of the following is not a main goal of a compromise dividend policy?
Select one:
a. maintaining a high dividend payout ratio
b. avoiding dividend cuts
c. avoiding the need to sell equity
d. maintaining a target debt-equity ratio
e. not rejecting positive net present value projects
2.) Assuming no market imperfections and ignoring taxes, share repurchases
Select one:
a. increase market value of equity.
b. reduce EPS.
c. decrease P/E ratio.
d. decrease share price.
e. increase the number of shares outstanding.
3.) The date of record for a dividend payment should follow the ____________ date.
Select one:
a. payment
b. ex-dividend
c. purchase
d. reckoning
e. rights-on
4.) Atlantis Corporation’s chief objective is to meet its investment needs and maintain its target debt-equity ratio before paying dividends. Atlantis is following a __________ dividend policy.
Select one:
a. cyclical
b. residual
c. stable
d. compromise
e. stochastic
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