FIN 534 RANK Imagine Your Future / FIN 534 RANK Imagine Your Future / - Page 176

Which of the following should not influence a firm’s dividend policy decision? Question 7 If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay Question 8 You own 100 shares of Troll Brothers’ stock, which currently sells for $120 a share. The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a split takes place? Answer