1. Announcements and news contain both an expected component and a surprise component. It is the surprise component that affects a stock’s price and therefore its return.

A. True

B. False

2. The ex-dividend date is defined as _____ business days before the date of_____

		two; payment.
		three; payment.
		two; record.
		three; record.

3. We want to choose the optimal capital structure for a firm that will maximize the stockholder wealth.

True

False