Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC Fixed payout ratio

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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QUESTION 8
Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its
balance sheet?
OA. Zero dividend payout
O B. Special dividend payments
OC. Fixed payout ratio
O D. Steadily increasing nominal dividend payment
O E. Constant real dividend payments
Transcribed Image Text:QUESTION 8 Which of the following dividend policies would be least appropriate for a company with a large amount of surplus cash in its balance sheet? OA. Zero dividend payout O B. Special dividend payments OC. Fixed payout ratio O D. Steadily increasing nominal dividend payment O E. Constant real dividend payments
QUESTION 7
CCB plc has just declared a dividend of 15p per ordinary share. Given that the company's shareholders require a return of
12% per year and that they expect future dividends to grow at an annual rate of 6%, what is the ex div share price predicted
by the dividend growth model?
O A. £2.65
O B. £2.50
OC. £3.53
OD.£1.25
O E. £2.57
Transcribed Image Text:QUESTION 7 CCB plc has just declared a dividend of 15p per ordinary share. Given that the company's shareholders require a return of 12% per year and that they expect future dividends to grow at an annual rate of 6%, what is the ex div share price predicted by the dividend growth model? O A. £2.65 O B. £2.50 OC. £3.53 OD.£1.25 O E. £2.57
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