Dividends are:

Multiple Choice

$49$

treated as a tax$-$deductible expense of the issuing firm.

payable at the discretion of a firm's president.

only partially taxable to high$-$income individual shareholders.

paid out of aftertax profits.

paid only to preferred stockholders.

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$17$ of $25$

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Flex Company just paid total dividends of $$1,000,000$ and reported additions to retained earnings of $$3,000,000.$ The company has $685,000$ shares of stock outstanding and a benchmark PE of $17$ times. What stock price would you consider appropriate?

Multiple Choice

$$99\mathrm{.}27$

$$24\mathrm{.}82$

$$74\mathrm{.}45$

$$89\mathrm{.}34$

$$94\mathrm{.}31$

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$16$ of $25$

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