Multiple Choice
Miller's Hardware recently paid $1.21 per share in dividends.The company currently has excess cash and would like to distribute an additional $.35 a share to its shareholders.However, the company is concerned about increasing the dividend by that amount as it will not be able to afford a similar increase in the future and doesn't want to lower the dividend once it has been raised.Which one of the following is probably the best suggestion for distributing the $.35 per share?
A) Pay a special dividend of $.35 per share
B) Pay an extra cash dividend of $.35 per share
C) Pay a liquidating dividend of $.35 per share
D) Increase the regular dividend by $.12 and pay a special dividend of $.23
E) Increase the regular dividend by $.12 and pay an extra cash dividend of $23
Correct Answer:
Verified
Correct Answer:
Verified
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