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1. 2. 3. 4. The dividend yield tells investors what proportion of net income will be paid out as a dividend. True False When firms

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The dividend yield tells investors what proportion of net income will be paid out as a dividend. True False When firms pay dividends, their share price falls. Paying dividends is therefore bad for shareholders. True False When an already announced stock split is implemented the share price falls. Therefore, stock splits are bad for shareholders. True False Match the following terms to their corresponding definitions: A. Date on which the dividend is paid to the holder-of-record. B. Date on which the company lists investors entitled to receive a declared dividend. C. The first day from which the right to a declared dividend is no longer traded with the share. D. Date on which the Board of Directors declares the firm will pay a dividend. select 1. Holder-of-Record Date select 2. Ex-dividend date select 3. Declaration date select 4. Payment date

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