1. Dividend policy Aa Aa Vick Shipping paid a dividend of $1.50 last year, and its dividend has increased steadily by about 4% a year. Vick just announced that its dividend will increase to $2.10 this year, and its stock price rose from $26 to $28 immediately after the announcement. Which of the following best explains why the price increased as it did? O The signaling hypothesis O The residual dividend model O The clientele effect O M-M dividend irrelevance Which class of investors is more likely to be pleased by Vick's dividend announcement? O Investors with low tax rates who depend on current dividend income for living expenses O Investors with high tax rates who don't depend on current dividend income for living expenses 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? And is the stock likely to have a high or low dividend yield? O Probably a utility stock that has a low dividend yield O Probably a utility stock that has a high dividend yield O Probably a technology stock that has a high dividend yield O Probably a technology stock that has a low dividend yield