BUS 401 Week 4 Quiz (Ash Course)/ uophelp

BUS 401 Week 4 Quiz (Ash Course) For more course tutorials visit www.uophelp.com This exam consists of 10 multiple choice and true/false questions. 1. Question : Operating leverage refers to ________ 2. Question : A firm that uses large amounts of debt financing in an industry characterized by a high degree of business risk would have ______ earnings per share fluctuations resulting from changes in levels of sales. 3. Question : JB Corporation has a retained earnings balance of $1,000,000. The company reported net income of $200,000, sales of $2,000,000, and had 100,000 shares of common stock outstanding. The company announced a dividend of $ 1 per share. Therefore, the company’s dividend payout ratio is _________. 4. Question : Assume Harris, Inc. Has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is currently trading for $30 per share. The firm reported a net profit after-tax of $25,000,000. All else equal, what will happen to earnings per share if the company issues a 10 % stock dividend? 5. Question : All of the following are likely to result in the use of less debt in a company’s capital structure expect: 6. Question : Which of the following statements would be consistent with the Dividend Irrelevance Theory? 7. Question : The break even point in sales dollars is convenient if ______ 8. Question : In perfect capital markets there ______ 9. Question : Financial leverage could mean financing some of a firm’s assets with _______ 10. Question : Dividend policy is influenced by _______

BUS 401 Week 4 Quiz (Ash Course)
For more course tutorials visit
www.uophelp.com

This exam consists of 10 multiple choice and true/false questions.
1. Question : Operating leverage refers to ________

2. Question : A firm that uses large amounts of debt financing in an industry characterized by a high degree of business risk would have ______ earnings per share fluctuations resulting from changes in levels of sales.
3. Question : JB Corporation has a retained earnings balance of $1,000,000. The company reported net income of $200,000, sales of $2,000,000, and had 100,000 shares of common stock outstanding. The company announced a dividend of $ 1 per share. Therefore, the company’s dividend payout ratio is _________.
4. Question : Assume Harris, Inc. Has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is currently trading for $30 per share. The firm reported a net profit after-tax of $25,000,000. All else equal, what will happen to earnings per share if the company issues a 10 % stock dividend?
5. Question : All of the following are likely to result in the use of less debt in a company’s capital structure expect:
6. Question : Which of the following statements would be consistent with the Dividend Irrelevance Theory?
7. Question : The break even point in sales dollars is convenient if ______
8. Question : In perfect capital markets there ______

9. Question : Financial leverage could mean financing some of a firm’s assets with _______

10. Question : Dividend policy is influenced by _______