PART $1$

Multiple Choices

$(6$ marks$)$

$1$

The typical reason for a stock split is to

A$)$ allow for growth in the company assets

B$)$ allow liabilities to grow

C$)$ increase earnings per share

D$)$ keep the share price in a range

$2.$ As the time period until receipt increases, the present value of an amount at a fixe interest rate

A$.$ decreases.

B$.$ remains the same.

C$.$ increases.

D$.$ Not enough information to tell.

$3.$The dividend valuation model stresses the

A$.$ importance of earnings per share.

B$.$ importance of dividends and legal rules for maximum payment.

C$.$ relationship of dividends to market prices.

D$.$ relationship of dividends to earnings per share.

$4.$ The profitability index is most closely related to which one of the followi

A$.$ payback

B$.$ modified internal rate of return

C$.$ average accounting return

D$.$ net present value

$5.$ Which one of the following dates is used to determine the names of s who will receive a dividend payment?

A$.$ declaration date

B$.$ ex$-$dividend date

C$.$ date of record

D$.$ date of payment

PART $1$

Multiple Choices

$(6$ marks$)$

$1$

The typical reason for a stock split is to

A$)$ allow for growth in the company assets

B$)$ allow liabilities to grow

C$)$ increase earnings per share

D$)$ keep the share price in a range

$2.$ As the time period until receipt increases, the present value of an amount at a fixe interest rate

A$.$ decreases.

B$.$ remains the same.

C$.$ increases.

D$.$ Not enough information to tell.

$3.$The dividend valuation model stresses the

A$.$ importance of earnings per share.

B$.$ importance of dividends and legal rules for maximum payment.

C$.$ relationship of dividends to market prices.

D$.$ relationship of dividends to earnings per share.

$4.$ The profitability index is most closely related to which one of the followi

A$.$ payback

B$.$ modified internal rate of return

C$.$ average accounting return

D$.$ net present value

$5.$ Which one of the following dates is used to determine the names of s who will receive a dividend payment?

A$.$ declaration date

B$.$ ex$-$dividend date

C$.$ date of record

D$.$ date of payment