ICMA Exam FMFQ Topic 2 Question 37 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 37
Topic #: 2

[All FMFQ Questions]

Which of the following statements is true of dividend payments in the equity market?

AAll equities pay dividends

BDividend rates are pre-determined at the launch of the equity

CManagement determines the level of dividend payment in each period

DIf a company does not pay a dividend one year then this skipped dividend becomes a liability on the company's balance sheet

Show Suggested Answer

Suggested Answer: C

by Helaine at May 06, 2022, 06:24 PM

Limited Time Offer

25%

Off

Get Premium FMFQ Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Reuben

5 days ago

I think I remember that not all equities pay dividends, so option A seems wrong.

upvoted 0 times

...

Ma

5 days ago

I’m a bit unsure, but I feel like management does decide on dividends each period, which might make C the right choice.

upvoted 0 times

...

Vashti

6 days ago

I'm a bit confused on this one. I know we use odiRef to access information, but I'm not sure which method is the right one for getting the error message. I'll have to think this through carefully.

upvoted 0 times

...

Jordan

12 days ago

Custom developments as Architecture Building Blocks? That doesn't sound right to me. I'll have to double-check my notes on TOGAF.

upvoted 0 times

...