1- Within the context of dividends payout procedure, " ex-dividend refer to when a stock sell ex-dividend, I.e., prior to the record date, in which buyer is entitled to receive dividends.

True or false

2- According to Signaling Hypothesis/Information Content Hypothesis, many investors argue that information is conveyed from firm's management to its stockholders through the firms dividend policy . Paying out dividends will send out a " signal to investors that the firm has been doing well and making money , pushing the stock price up . Deciding not to pay out dividends or paying out small amount will send out a signal that the company has not been doing well enough to pay out dividends .

TRUE OR FALSE

3- When stock split takes place, new shares are issued and the par value of the stock is doubled in the case of a 2- for-1 split, and tripled in the case of a 3- for-1 split . Here, funds are transformed from retained earning account . However, earnings per share are cut in half in the case of a 2-for -1 split ; in third in the case of a 3 -for- 1 split and the market price of the stock will be cut in half in the case of a 2-for -1 split, and in third in the case of a 3- for -1 split .

TRUE OR FALSE