Which of the following tends to increase the ability of a shareholder to create his or her own homemade dividend policy?

Which of the following tends to increase the ability of a shareholder to create his or her own homemade dividend policy? I. low taxes on capital gains II. dividend reinvestment plans III. large holdings of shares IV. low cost equity purchases    A.  II only B.  II and III only C.  I, II, and III only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 17.2

25.

Which one of the following favors a low dividend policy?    A.  the tax on capital gains is deferred until the gain is realized B.  few, if any, positive net present value projects are available to a firm C.  a majority of the shareholders has a low relevant tax rate D.  a majority of the shareholders has better investment opportunities with similar risks E.  corporate tax rates exceed personal tax rates Refer to section 17.3

26.

The fact that flotation costs can be significant is an argument for:    A.  a firm to issue larger dividends than its closest competitors. B.  a firm to maintain a constant dividend policy even if it frequently has to issue new C.  shares. D.  maintaining a constant dividend policy even when profits decline significantly. E.  maintaining a high dividend policy. F.  maintaining a low dividend policy and rarely issuing extra dividends. Refer to section 17.3

27.

Which of the following tend to keep dividends low? I. shareholders desiring current income II. terms contained in bond indenture agreements III. the desire to maintain constant dividends over time IV. flotation costs    A.  II and III only B.  I and IV only C.  II, III, and IV only D.  I, II, and III only E.  I, II, III, and IV Refer to section 17.3