1) A company which pays out the same percentage of their profits as dividends every year is following a

	A) small regular dividend plus "extras" policty
		B) constant payout ratio
		C) residual stock dividend
		D)) stable dollar payout

2) An annuity due has a smaller present value than an ordinary annuity.

True or false?

3)

There are two types of dividend reinvestment plans. Under one type of plan, the firm uses the cash that would have been paid as dividends to buy stock on the open market. Under the other type, the company issues new stock, keeps the cash that would have been paid out, and in effect sells new stock to those investors who choose to reinvest their dividends.

True or False?

4)

One advantage of divident reinvestment plans is that they allow shareholders to delay paying taxes on the dividends that they choose to reinvest.

True or false?