1. Iviatell lle plifases lil Colullill A will lie Corresponding dividelid theory III Golullill D. Note that you may use the answers in Column B more than once. Column A Column B 1. Bird in the hand 2. Homemade dividends 3. High tax rates on dividends a) dividend policy matters b) dividend policy is irrelevant 2. Which of the following assumptions is not required for Miller and Modigliani's (MM) dividend theory? A. There are no taxes. B. Investors sort themselves into dividend clienteles. C. Shareholders have no transaction costs when buying and selling shares. 3. The clientele effect implies that: A. investors prefer high dividend paying shares. B. investors have varying preferences regarding dividends. C. low tax bracket investors are indifferent to dividends