1. Roger Mason intends to take a position in Supersoft Industries once Supersoft begins paying dividends. A dividend of $4 is payable by Supersoft on 2 December. The ex-dividend date for the dividend is 10 November, and the holder-of-record date is 12 November. What is the last possible date for Mason to purchase his shares if he wants to receive the dividend? a. 9 November 6. 10 November c. 11 November 2. Allied Instruments has recently declared a regular quarterly dividend of $0.50, payable on 12 November, with an ex-dividend date of 28 October. Which date below would be the holder-of-record date assuming all the days listed are business days and that trades settle two business days after the trade date (i.e., T+2)? a. 27 October 6. 29 October c. 10 November 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. 4. Which of the following is most likely to signal negative information concerning a company? a Share repurchase. b. Decrease in the quarterly dividend rate. c. A two-for-one stock split 5. RCM Corporation is located in a jurisdiction that has a 40% corporate tax rate on pretax income and a 30% personal tax rate on dividends. RCM distributes all its after-tax income to shareholders. What is the effective tax rate on RCM pretax income distributed in dividends? a. 42% b. 58% c. 70%