1. K-Electric Power Company is a power generation company, while Procter and Gamble is a consumer products company and Toyota Motors is an automobile manufacturing company. Which of the following is most likely to issue special dividends for sharing profits with shareholders in times of profitability, but conserve cash otherwise?
A. K-Electric Power Company.
B. Procter and Gamble.
C. Toyota Motors.
2. In a sales-driven pro forma analysis, net income grows from $1.58 million to $1.74 million. Assuming a dividend payout ratio of 50%, the increase in retained earnings is closest to (in $ millions):
3. Supers Controlisque recently declared a quarterly dividend of $1.13 payable on Thursday, March 6, to holders of record on Friday, February 21. What is most likely to be the last day an investor could purchase Supers’ stock and still receive the quarterly dividend?
A. February 18.
B. February 23.
C. February 21.
Tomorrow’s questions of the day will be on the topic of R39: Working Capital Management