1. A firm with very positive prospects to raise new capital, the firm should avoid:

1. Using retained earning dividends
2. To not pay cash dividends
3. New debt
4. Selling stock

2. A Company with a high distribution ratio and a high payout ratio means:

1. the company pays large dividends and has small or zero repurchase of stock
2. the company pays small dividends and has large repurchase of stock
3. the company pays no dividends
4. the company has large repurchases

3. An increase in dividend generally leads to:

1. a decrease in the price of the stock
2. no change in the price of the stock
3. an increase in the price of the stock
4. none of the above.