1. MM suggested that although dividend policy should be irrelevant to firm value, some shareholders...

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Finance

1. MM suggested that although dividend policy should be irrelevant to firm value, some shareholders may prefer particular pay-outs. Preferences may depend on investors tax brackets or the timing of payments. Name this theory.

Clientele Effect

Catering Theory

Signaling Theory

Agency Theory

2.

On this date a list is prepared of all shareholders entitled to dividend

Declaration date

Ex-dividend date

Record date

Payment date

QUESTION 5

When two firms agree to become one firm.

Merger

Franchise

Joint Venture

Business Alliance

If markets are efficient, a bidder which offers a price to a target which is above the market price is making an error. Bidder may be willing to do this due to over-confidence of the bidding firms management, which may think it knows more than the market. Which theory of MA is this referring to?

Efficiency

Synergy

Hubris

Agency Explanations

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