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238 Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh Edition

5)

Dividends are paid from

(a)

liabilities.

(b)

debts.

(c)

net earnings.

(d)

both (a) and (b) of the above.

(e)

none of the above.

Answer:

Question Status: New

6)

Payments of net earnings to shareholders are called

(a)

dividends.

(b)

capital gains.

(c)

profits.

(d)

loans.

(e)

interest.

Answer:

Question Status: New

7)

Periodic payments of net earnings to shareholders are known as

(a)

capital gains.

(b)

dividends.

(c)

profits.

(d)

all of the above.

(e)

both (a) and (b) of the above.

Answer:

Question Status: New

8)

Dividends are periodic payments of net earnings to

(a)

employees.

(b)

managers.

(c)

creditors.

(d)

shareholders.

(e)

all of the above.

Answer:

Question Status: New

9)

The value of an investment can be found by computing the present value of all future

(a)

debts.

(b)

sales.

(c)

liabilities.

(d)

cash flows.

(e)

risks.

Answer:

Question Status: New

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