Multiple Choice
Legal capital refers to ________.
A) a legal constraint imposed by lenders of a firm to maintain a certain level of debt to equity ratio and capital
B) capital impairment restrictions are generally established to provide a sufficient equity base to protect creditors' claims
C) the capital which is typically measured by the retained earnings
D) the capital which is typically measured by net income
Correct Answer:
Verified
Correct Answer:
Verified
Q104: Gordon's "bird-in-the-hand" argument suggests that _.<br>A) dividends
Q105: Hayley's Optical has a stockholders' equity account
Q106: Regularly paying a fixed or increasing dividend
Q107: A constant-payout-ratio dividend policy is based on
Q108: Ignoring general market fluctuations, the stock's price
Q110: The dividend payment date is set by
Q111: Modigliani and Miller argue that when a
Q112: After the stock dividend is paid, the
Q113: A firm has had the following earnings
Q114: According to the catering theory, firms cater