1. Dividend policy is influenced by ______(Points : 1) A company’s investment opportunities A firm's capital structure mix A company’s availability of internally generated funds. All of the above

2. A corporation with very high growth prospects and many positive NPV projects to fund may want to increase its dividend based on ______(Points : 1) The tax bias against capital gains. The residual dividend theory The information effect The very low agency costs of the corporation

3. Financing a portion of a firm’s assets with securities bearing a fixed rate of return in hopes of increasing the return to stockholders refers to ______(Points : 1) Business risk Financial leverage Operating leverage Combined leverage

4. In perfect capital markets there ______(Points : 1) Is no informational content assigned to a particular dividend policy. Are no income taxes Are no flotation costs All of the above

5. Low dividends may increase stock value according to the ______(Points : 1) Bird in the hand theory Information effect Impact of agency costs Tax bias in favor of capital gains

6. Break even analysis is used to study the effect on EBIT of changes in all of the following except: (Points : 1) Corporate taxes Prices Cost structure Volume

7. The final approval of a dividend payment comes from ______(Points : 1) The controller The president of the company The board of directors It is a joint decision requiring approval from all of the above.

8. Amish Enterprises makes wooden play sets. The company pays annual rent of $350,000 per year and pays administrative salaries totaling $120,000 per year. Each play set requires $300 of wood, ten hours of labor at $50 per hour, and variable overhead costs of $50. Fixed advertising expenses equal $40,000 per year. Each play set sells for $ 2,350. What is Amish Enterprises' break even output level? (Points : 1) 340 play sets 217 play sets 159 play sets 270 play sets

9. A plant may remain operating when sales are depressed ______(Points : 1) If the selling price per unit exceeds the variable cost per unit To help the local economy In an effort to cover at least some of the variable cost Unless variable costs are zero when production is zero

10. A high degree of variability in a firm’s earnings before interest and taxes refers to ______(Points : 1) Business risk Financial risk Financial leverage Operational leverage