The residual dividend theory suggests that dividends will only be paid
A) if the corporation has more positive NPV projects than it can fund.
B) if the tax rate on capital gains is higher than the tax rate on dividends.
C) if interest rates available to shareholders are higher than the required return on the company's
stock.
D) if current retained earnings exceed the equity portion of the firm's capital budget.
D
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The most elaborate form of product use test requires:
A) diagnostic test to eliminate serious problems with the product. B) limited time horizon trial among customers who should be asked whether they would buy. C) placement of the product in homes for an extended period. D) small sample of customers, usually employees.
Where the _____ technique increases the discount rate to adjust for risk, the _________ decreases the cash flow.
a) CE approach; IRR b) RADR; CE approach c) MIRR; CE approach d) MIRR; RADR e) RADR; MIRR
A major manufacturer of bread sells its finished products to a grocery store chain. This grocery store then sells the bread to its customers. What type of channel is this, and what are the levels of distribution?
What will be an ideal response?
The condition when there is no solution that satisfies all the constraints simultaneously is called
A) boundedness. B) redundancy. C) optimality. D) dependency. E) None of the above