1. Under which theory are investors most concerned by taxes paid on dividends? a. Dividend Irrelevance b. Dividend Preference c. Dividend Aversion d. Clientele e. Investors are not concerned by taxes under any of these theories. 2. Under the residual dividend policy, a. Investors are not indifferent between dividends and capital gains b. The firm determines the target capital structure based on their current equity c. The firm uses retained earnings to meet equity requirements to the extent possible d. The firm pays dividends regardless if more earnings are available to support the capital budget or not e. None of the above are true 3. Which of the following is not a factor in determining the effects of dividend policy on rs? a. Stockholders' desire for current versus future income b. The perceived riskiness of dividends versus capital gains c. The tax advantage of capital gains d. The capital budgeting policy of the firm e. The information or signaling content of dividends