1. _______________ are when the firm buys back a set number of shares on a set date for a specific price.
a. Stock Splits
b. Open Market Repurchases
c. Dividend Reinvestment Plans
d. Tender Offer Repurchases
2. A firm has Net Income of $600,000, capital expenditures of $500,000, and a target debt ratio of 60%. If the firm follows a residual dividend policy, then what is their payout ratio?
a. 28%
b. 36%
c. 48%
d. 67%