Please complete the following questions/definitions:

1 - Explain the Key Terms (ST-1) in your own words. Do not to quote from the text, or from my lecture notes, use your own words. Its the best way to learn.

(If you do copy, youll have to use quotation marks and cite your source and the page #, but you wont learn as much and youll have trouble remembering the new financial terms.)

2 a) Which is more critical to the dividend decision, earnings or cash flow? Explain.

b) Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend of 50 cents per share will be payable to the holders of record at the close of business on November 15th 2019. What date is the declaration date, the holder of record date, the ex-dividend date, and the payment date?

c) Why is the ex-dividend date important to investors?

3 - For Apple (AAPL) traded on Nasdaq, 2018 was an unusual year for dividends. What were the dividend declaration dates, the DPS for each quarter, the ex-dividend dates for each quarter and the percent increase in the dividend when it was raised? Use your browser to look up the answers. Its not in the chapter.

4 - How much does Apple plan to spend on its repurchase plan (also called buyback plan?) Use your browser here too.

5 a) What are the 4 broad sets of factors that affect dividend policy? This is in the chapter.

b) List and briefly explain (in your own words) the constraints that limit the power of the Board of Directors to declare dividends.

c)How do investment opportunities affect dividend policy?

d) How does the availability and cost of outside capital (external capital) affect dividend

6 a) Whats the difference between a stock dividend and a stock split? b) How do stock dividends and splits affect stock prices?

c) In what situation should a firm pay a stock dividend?

d) In what situation should a firm split its stock?

e) Consider the following case: You have 100 common shares of The Staten Island

Suppliers Co. (CSI) The EPS is $4.00, the DPS is $2.00; and the stock sells for $60 per share. If CSI does a two-for-one stock split how many shares will you have; what will be the new EPS and DPS; and what would you expect the stock price to be?

Also do not forget the assignment that is posted in the notes (I copied and posted this page in the notes folder:

Look at the questions after section 15-3c. Do the numerical problem, show all work.

This work assignment is due 03/30/20.

If you do this assignment well, you'll have no trouble with this topic on the exam.

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