Question

What do stock splits often increase?

Select one:

a. The price of shares

b. The number of shares

c. The cost of shares

d. The value of shares

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Dividends are typically taxed at which level?

Select one:

a. Investor level

b. Company level

c. No level

d. Both A and B

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Which of the following represents the right blend of capital debt and equity for companies?

Select one:

a. Structure

b. Risk

c. Loans

d. Theory

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What happens when companies sell a stock for more than what they paid for it?

Select one:

a. Loss

b. Dividend

c. Capital gain

d. Split

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Which of the following are two methods that financial managers use to determine a company's overall risk?

Select one:

a. Capital and financial methods

b. Financial and business methods

c. Time and money methods

d. Expected and unexpected methods

Answer 1

Stock splits often increase the number of shares

Answer is b. The number of shares

Dividends are typically taxed first at the corporate level as net profit is after taxes an then at the investor side as dividend income tax.

Answer is d. Both A and B

Right blend of debt and equity in a company is called capital structure

Answer is a. Structure

When a stock is sold more than what they paid for it, it is called Capital gain

Answer is C) Capital gain

Overall risk for a company is found by using financial and business methods as there are two primary risks inherent for a firm, ie operational risk and financial risk.

Answer is b. Financial and business methods