Transcription of CHAPTER 18 Dividend and Other Payouts
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CHAPTER 18 Dividend and Other Payouts
18-1 CHAPTER 18 Dividend and Other Payouts Multiple Choice Questions: I. DEFINITIONS DIVIDENDS a 1. Payments made out of a firm s earnings to its owners in the form of cash or stock are called: a. dividends. b. distributions. c. share repurchases. d. payments-in-kind. e. stock splits. Difficulty level: Easy DISTRIBUTIONS b 2. Payments made by a firm to its owners from sources Other than current or accumulated earnings are called: a. dividends. b. distributions. c.
b. distributions. c. share repurchases. d. payments-in-kind. e. stock splits. Difficulty level: Easy REGULAR CASH DIVIDENDS c 3. A cash payment made by a firm to its owners in the normal course of business is called a: a. share repurchase. b. liquidating dividend. c. regular cash dividend. d. special dividend. e. extra cash dividend.
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