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NEW QUESTION: 1
Which of the following statements best describes the theories of investors' preferences for dividends?
A. The bird-in-hand theory suggests that a company can reduce its cost of equity capital by reducing its dividend payout ratio.
B. Modigliani and Miller argue that investors prefer dividends to capital gains.
C. The tax preference theory suggests that a company can increase its stock price by increasing its dividend payout ratio.
D. The clientele effect suggests that companies should follow a stable dividend policy.
E. One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
Answer: D
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
A frustrated and angry customer calls in with a system that does not work. Which of the following is the FIRST course of action for a technician to take?
A. Transfer the customer to another technician, who can allocate more time to the issue.
B. Use technical language to demonstrate knowledge and expertise to the customer.
C. Maintain a positive attitude and offer them the cheapest solution possible to satisfy them.
D. Listen to what the customer has to say and calmly recommend the best course of action.
Answer: D

NEW QUESTION: 3
Your customer wants to use an approval workflow for Succession. Where is this feature enabled?
A. All of the above
B. Succession Data Model
C. Provisioning
D. Admin Center
Answer: C

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