Question

when can you cut a firms devidend and still increase the firms share price

a. when you cut a dividends to invest in new projets

b when you retain more earnings. the more earnings you retain, the higher the guture growth rate

c the price of a stock will always go down if you cut dividends

d only when you cut dividends and invest in profitable projects

2. whihc one of the following is not often associated with venture capital investments

a. vcs would investor for trateric objectives in addition to financial returns

b. vc firms are more involved in the business than angel investors

c vcs can provide the benefit of experience to start up companies

d vc investments are procyclical

3whihc of the following statement is false

a the volatility of an individual stock is more than the volatility of a well diversified portfolio of stocks

b. stock returns will tend to move together if they are affected similarly by economic events

c. the more the stocks move together and the higher their covariance or correlation, the more volatile the portfolio will be

d almost all of the correlations between stocks are neg. illustrating the general tendency of stocks to move together

Answer 1

1.  when can you cut a firms devidend and still increase the firms share price

* when you retain more earnings. the more earnings you retain, the higher the guture growth rate (B)

2. whihc one of the following is not often associated with venture capital investments

   vcs can provide the benefit of experience to start up companie (C)

3 whihc of the following statement is false

almost all of the correlations between stocks are neg. illustrating the general tendency of stocks to move together (D)