1. If a firm's management leads a leveraged buyout transaction, then the transaction is called a(an): A. IPO B. C. MACRS D. SEO 2. The main characteristics of LBOS are: high debt private ownership management incentives all of these options A. . C. D. 3. Which of these dates, when arranged in chronological order, occurs last? dividend payment date ex-dividend date . B. . record date D. dividend declaration date 4. If investors do not like dividends because of the additional taxes that they have to pay, how would you expect stock prices to behave on the ex-dividend date? Fall by more than the amount of the dividend Fall exactly by the amount of the dividend Fall by less than the amount of the dividend Cannot be predicted A. . D . D. 13 I) 5. Two corporations A and B have exactly the same risk, and both have a current stock price of $100. Corporation A pays no dividend and will have a price of $120 one year from now. Corporation B pays dividends and will have a price of $113 one year from now after paying the dividend. The corporations pay no taxes and investors pay no taxes on capital gains, but pay a 30 % income on dividends. What is the value of the dividend that investors expect corporation B to pay one year from today? A. . $7 $13 $10 $20 A D. . C. 12. D. reta Com