1. Dividend policy Aa Aa A firm's value depends on its expected free cash flow and its cost of capital. Distributions made in the form of dividends or stock repurchases impact the firm's value and the investors in different ways. Some analysts have argued that a firm's value should solely be determined by its basic earning power and the business risk of the firm. Which of these concepts would support these analysts' argument? O Dividend irrelevance theory O The free cash flow hypothesis O The clientele effect O The signaling hypothesis Suppose a firm generates a lot of cash but has limited investment opportunities. Is this stock more likely to be a utility stock or a technology stock? In addition, is the stock more likely to have a high or low dividend yield? O A technology stock that has a high dividend yield O A utility stock that has a low dividend yield O A utility stock that has a high dividend yield O A technology stock that has a low dividend yield Which of these statements is true? O Taxes on dividends are paid when the stock is sold O Taxes on dividends are paid in the year that they are received Consequently, the tax code encourages many individual investors to prefer Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock price. The theory of explains this phenomenon