Dividends that are expected to be paid far into the future have:Select one:a.great impact on current stock price, due to their expected size.b.equal impact on current stock price as near-term dividends.c.lesser impact on current stock price due to discounting.d.no impact on current stock price because they are uncertain.

The bird-in-hand theory of dividend policy suggests that investors prefer:a.Higher dividends today rather than uncertain capital gains in the futureb.Lower dividends today in exchange for potential capital gains in the futurec.Dividends paid in the form of additional shares rather than cashd.Dividends paid irregularly based on company performance

Dividend policies can impact a company's stock price because they:a.Affect investor perceptions of the company's financial healthb.Determine the total amount of cash available for investmentc.Determine the cost of equity capitald.Influence the company's capital structure

Which of the following statements is FALSE? O a. The simplest forecast for the firm's future dividends states that they will growat a constant rate; i.e., forever. O b. We must discount the cash flows from stock based on the equity cost ofcapital for the stock. O c. The firm might pay out cash to its shareholders in the form of a dividend.O d. The dividend yield is the expected annual dividend of a stock, divided by itsexpected future sale price.

Factors affecting Dividend Decision

Dividends paid: a. decrease revenues. b. decrease equity. c. increase liability. d. increase expenses.