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NEW QUESTION: 1
Which of the following statements is most correct?
A. If the dividend irrelevance theory (which is associated with the names Modigliani and Miller) were exactly correct, and if this theory could be tested with "clean" data, then we would find, in a regression of dividend yield and capital gains, a line with a slope of -1.0.
B. If a company raises its dividend by an unexpectedly large amount, the announcement of this new and higher dividend is generally accompanied by an increase in the stock price. This is consistent with the bird-in-the-hand theory, and Modigliani and Miller used these findings to support their position on dividend theory.
C. Each of these statements are false.
D. If it could be demonstrated that a clientele effect exists, this would suggest that firms could alter their dividend payment policies from year to year to take advantage of investment opportunities without having to worry about the effects of changing dividends on capital costs.
E. The tax preference and bird-in-the-hand theories lead to identical conclusions as to the optimal dividend policy.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The main conclusion of MM's irrelevance theory is that dividend policy does not affect the required rate of return on equity. MM theorized that k(s) is independent of dividend policy, implying that investors are indifferent between dividends and capital gains.
NEW QUESTION: 2
How should a seller respond to a prospect who says that many companies sell security solutions, and who asks
"Why should I buy from IBM?".
A. Do not underestimate the ability of hackers to find and exploit vulnerabilities.
B. IBM offers better discounts than its competitors, enabling companies to save more money.
C. IBM has an integrated portfolio of security products, while most other companies offer only point solutions.
D. IBM has the best security products on the market.
Answer: C
NEW QUESTION: 3
Refer to the exhibit. R1 is configured as shown. R1 is able to establish a neighbor adjacency only with R2.
Which addition must you make to the R1 configuration to allow it to establish an adjacency with R3?
A. router ospf 1
area 0 stub
B. interface gigabitethernet 0/1
ip address 10.1.0.1 255.255.255.0
ip ospf 1 area 0
C. router ospf 1
network 10.1.0.0 0.0.0.255 area 1
D. interface gigabitethernet 0/1
ip address 10.1.0.1 255.255.255.0
ip ospf network point-to-point
Answer: C
Explanation:
Explanation/Reference:
Explanation:
To enable interfaces and networks with OSPF, the networks need to be specified in the network statement.
In the configuration shown, only 10.0.0.0/24 has been enabled, we are missing the network connecting to R3 (10.1.0.0/24).