1) Which theory advocates that a firm borrows up to the point where the tax benefit from additional debt is exactly equal to the cost of the increased probability of financial distress?

A. Liquidating

B. Special

C. Extra Cash

D. Stock

2. Cass purchased 100 shares of Polar Tek stock on Monday, September 3. Polar Tek paid its quarterly dividend of $.80 a share on Friday, September 28. The record date was Wednesday, September 5. How much did Cass receive as a dividend payment on September 28?

A. $0

B. $0.80

C. $8.00

D. $80.00

3. Cass purchased 100 shares of Polar Tek stock on Monday, September 3. Polar Tek paid its quarterly dividend of $.80 a share on Friday, September 28. The record date was Wednesday, September 5. How much did Cass receive as a dividend payment on September 28?

A. $40.40

B. $40.50

C. $40.61

D. $41.20