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please don't use ai, I will detect it. if it is proven to be used, I will downvote it. 1. Retained earnings are
- an indication of a company's liquidity.
- the same as cash in the bank.
- not important when determining dividends.
- the cumulative earnings of the company after dividends.
2. Which of the following is an argument for the relevance of dividends?
- Informational content.
- Reduction of uncertainty.
- Some investors' preference for current income.
- All of the above
3. The Efficient Portfolio Frontier is (See next page)
- 100% Security 1-100% Security 2
- 50/50 Mix - 100% Security 2
- 100% Security -50/50 Mix
- 30/70 Mix - 100% Security 2
Average Annual Rate of Return
Standard Deviation
4. If Ian O'Connor Enterprises, Inc., repurchased 50 percent of its outstanding common stock from the open (secondary) market, the result would be
- a decline in EPS.
- an increase in cash.
- a decrease in total assets.
- an increase in the number of stockholders.
5. "Shareholder wealth" in a firm is represented by:
- the number of people employed in the firm.
- the book value of the firm's assets less the book value of its liabilities.
- the amount of salary paid to its employees.
- the market price per share of the firm's common stock.
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