Question

1) (T/F) A put warrant gives an investor the right to sell a security.

Select one:

True

False

2) (T/F) In the Tax Effect Theory of Dividends, investors prefer a higher dividend payout so they can write more off on their taxes.

Select one:

True

False

3) Is financial leverage an issue for a firm when taking on additional debt or additional equity?

Select one:

a. Financial leverage is an issue of a firm’s debt usage

b. Financial leverage is an issue of a firm’s equity usage

4) (T/F) The Bird-in-the-hand Theory is one of the three major dividend theories.

Select one:

True

False

5)  (T/F) Miller and Modigliani support the Dividend Irrelevance Theory. They state the payout in dividends has no effect on stock value.

Select one:

True

False

Answer 1

1) A put warrant gives an investor the right to sell a security.

True

2)

False

3) Is financial leverage an issue for a firm when taking on additional debt or additional equity?

a. Financial leverage is an issue of a firm’s debt usage

4) (T/F) The Bird-in-the-hand Theory is one of the three major dividend theories.

True

5) (T/F) Miller and Modigliani support the Dividend Irrelevance Theory. They state the payout in dividends has no effect on stock value.

True