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WorksheetsHSE Corporate Governance Quiz 3 I
Total questions: 10
Worksheet time: 6mins
Free Cash Flow to Firm is best described as
The cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets
The cash a company generates after taking into consideration cash outflows that support its operations, maintain its capital assets and pay to debtholders
The cash a company generates after taking into consideration cash outflows that support its operations, maintain its capital assets, paid to debtholders and distrbuted equity between shareholders
None of the options
Annual Free Cash Flow's to Equity resulting value reflects
Possible payments to creditors
Possible dividend payments to shareholders
Possible amount to be retained as spare cash in the company
Possible amount to repurchase the stocks of the company
When the board declares a dividend, company has to pay it. This incurs:
Liability for shareholders
Liability for corporation
Asset for corporation
Equity for debtholders
What is a stock dividend?
Authorisation of additional shares to current stockholders
Issue of additional shares to current stockholders
Dividend resolution approved by regulators
Repurchase of stocks of the company from the exchange
What are the components of Total Shareholder's Return?
Dividend Yield
Dividend Payout
Capital Gain
Stock selling
What is the rationale of the company to repurchase its own shares?
Increase its market price
Improve liquidity of its stocks
Decrease its market price
Belief it's undervalued
What is the title of reports annualy submitted by public companies to SEC
10-K
12-A
8-Q
S7
Dividend can be paid only if Retained Earnings are positive
TRUE
FALSE
If company like Mondelez pays dividends 0.35$ each quarter it is best described as
Stable dividend policy
Constant dividend policy
Residual dividend policy
Random dividend policy
If shareholder requires higher return from the company than his perception of the stock's value
Increases
Decreases
Remains the same
