Payments made by one divorced spouse to the other spouse as spousal support can be called:

In investors’ minds, Wilson’s share buyback could be a signal that the company:

Janet Wu is treasurer of Wilson Paper Company, a manufacturer of paper products for the office and school markets. Wilson Paper is selling one of its divisions for $70 million cash. Wu is considering whether to recommend a special dividend of $70 million or a repurchase of 2 million shares of Wilson common stock in the open market. She is reviewing some possible effects of the buyback with the company’s financial analyst. Wilson has a longterm record of gradually increasing earnings and dividends. Wilson’s board has also approved capital spending of $15 million to be entirely funded out of this year’s earnings. Book value of equity $750 million ($30 a share) Shares outstanding 25 million 12-month trading range $25–$35 Current share price $35 After-tax cost of borrowing 7% 60 Learning Outcomes, Summary Overview, and Problems part-i-07 13 January 2012; 10:21:1 Estimated full year earnings $25 million Last year’s dividends $9 million Target debt/equity (market value) 35/65 A. is decreasing its financial leverage. B. views its shares as undervalued in the marketplace. C. has more investment opportunities than it could fund internally.

The National Collegiate Athletic Association refers to student-athletes from other countries as nonresident aliens.

a. true b. false