1.) Which of the following theories states that investors prefer a low dividend payout? A.) Bird in the Hand Theory B.) Tax Preference Theory C.) Theory that Dividends are Irrelevant D.) Signaling Hypothesis Theory -2) Which of the following is true with regard to operating leverage? A.) The lower the fixed costs within a firm, the greater the operating leverage B.) The higher the fixed costs within a firm, the lower the operating leverage C.) The operating leverage is not impacted by the fixed costs D.) None of the above 3.) Which of the following is/are an advantage of the residual distribution model? A.) The model maximizes new stock issuance B.) The model minimizes stock flotation costs C.) The model can result in variable dividends as needed D.) A and B E.) B and C F.) All of the above G.) None of the above -4.) Which of the following are true with regard to convertible securities? A.) Conversion of the convertible security will increase the company's financial strength B.) Conversion of a convertible security will bring in new capital for the company C.) The conversion price does not change over the life of the convertible security D.) All of the above E.) None of the above