1. The DTL equals the DOL divided by the DFL. True or false?

2. The primary goal of any capital structure decision is to maximize EPS. T or F ?

3.The bird-in-the-hand argument argues that investors see current dividends as less risky than future dividends. T or F ?

4. In general, companies view dividend policies as being largely irrelevant to their shareholders. T or F ?

5. In general, increasing the fixed cost per order will increase the EOQ. T or F ?

6. At the EOQ, the total annual order costs equal the total annual carrying costs. T or F