S.L. Moffatt, Inc. has paid a quarterly dividend of $1.20 per share for the last ten quarters

Which of the following shareholders tend to favor a high dividend policy? I. retired individuals II. endowment funds III. corporate investors IV. investors with high dividend tax rates but low capital gains tax rates    A.  I and III only B.  II and IV only C.  I, II, and III only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 17.4

29.

An investor is more likely to prefer a high dividend payout if a firm:    A.  has high flotation costs. B.  has few, if any, positive net present value projects. C.  has lower tax rates than the investor. D.  has a stock price that is increasing rapidly. E.  offers substantial gains on its equities, which are taxed at a favorable rate. Refer to section 17.4

30.

The information content of a dividend increase generally signals that:    A.  the firm has a one-time surplus of cash. B.  the firm has few, if any, net present value projects to pursue. C.  management believes earnings growth will be strong going forward. D.  the firm has more cash than it needs due to a decline in future orders. E.  dividends thereafter will be lower. Refer to section 17.5

31.

S.L. Moffatt, Inc. has paid a quarterly dividend of $1.20 per share for the last ten quarters. Which one of the following is most apt to cause the firm to reduce the amount of its next dividend payment?    A.  decrease in the next quarter's revenue B.  decrease in the next quarter's net income C.  loss of a major customer which lowers the firm's outlook for the next few years D.  major lump sum cash outflow next month to settle a class action product liability lawsuit on a product that is no longer produced E.  decrease in the number of new projects under consideration as compared to last year Refer to section 17.5