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NEW QUESTION: 1
Which of the following statements best describes the theories of investors' preferences for dividends?
A. The clientele effect suggests that companies should follow a stable dividend policy.
B. The tax preference theory suggests that a company can increase its stock price by increasing its dividend payout ratio.
C. The bird-in-hand theory suggests that a company can reduce its cost of equity capital by reducing its dividend payout ratio.
D. Modigliani and Miller argue that investors prefer dividends to capital gains.
E. One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Different groups, or clientele, of stockholders prefer different dividend payout policies. Stockholders in a low or tax-free tax bracket generally prefer cash income, so a payout would be their preference. On the other hand, stockholders in a high tax bracket might prefer reinvestment of earnings because they have little need for current investment income. To the extent that stockholders can switch firms, a firm can change from one dividend payout policy to another to let stockholder who do not like the new policy sell to other investors who do. Yet this would be costly because of brokerage costs, the capital gains taxes that would have to be paid by the selling stockholders, and the chance that there will be a net loss of investors who like the firm's new dividend policy. Management should therefore, probably not change its policy.
Several studies show that there is a clientele effect, which is the tendency of a firm to attract a set of investors who like its dividend policy. The existence of the clientele effect does not necessarily imply that one dividend policy is better than another.

NEW QUESTION: 2
Of the following, retention of business records should be PRIMARILY based on:
A. device storage capacity and longevity.
B. regulatory and legal requirements.
C. periodic vulnerability assessment.
D. past litigation.
Answer: B
Explanation:
Explanation
Retention of business records is a business requirement that must consider regulatory and legal requirements based on geographic location and industry. Options A and C are important elements for making the decision, but the primary driver is the legal and regulatory requirements that need to be followed by all companies.
Record retention may take into consideration past litigation, but it should not be the primary decision factor.

NEW QUESTION: 3
An engineer has added an access point to a deployment after a post installation site survey. The engineer then notices that there has been an increase in co channel interference and retransmissions. Which two features can help mitigate the issue?(choose two)
A. Coverage hole detection
B. Enhanced distributed channel access
C. Cisco compatible extensions
D. Dynamic channel assignment
E. Transmit power control
Answer: D,E