According to Modigliani and Miller and the dividend irrelevanceargument which of the following statements is true?

	a.	Only firms with temporary excess cash should pay a dividend.
	b.	Regardless of the tax treatment of dividends, investors preferdividends since they receive cash today as opposed to postponingreceiving capital gains.
	c.	Firms pay the same total return (dividends and priceappreciation combined) so without tax differences investors shouldbe indifferent to receiving their returns as dividends of priceappreciation.
	d.	Dividends have historically been taxed a different rate thancapital gains making them less attractive to investors.

Which of the following is not a reason comparing the dividendyield and dividend payout to comparable firms might bemisleading?

	a.	It assumes all firms in the industry have the same reinvestmentneeds.
	b.	It should also include stock buybacks.
	c.	The entire industry may have an unsustainable dividendpolicy.
	d.	Firms in the industry should face similar risks and have similarinvestment needs.

In which of the following circumstances will the firm have themost pressure to pay out more in dividends?

	a.	The firm has good projects and pays out less than available fromFCFE.
	b.	The firm has poor projects and pays out less than available fromFCFE.
	c.	The firm has poor projects and pays out more than available fromFCFE.
	d.	The firm has good projects and pays out more than available fromFCFE.

What is the term for the date that an investor must have boughtthe share by in order to receive a dividend.

	a.	Ex-dividend date.
	b.	Dividend payment date.
	c.	Dividend declaration date.
	d.	Holder-of-record date.