14- Which of the following is/are direct costs of bankruptcy?

I. Loss of key employees

II. Foregone profitable projects due to debt restrictions

III. Loss created by sale of assets which was required to improve liquidity

IV. Accounting and legal fees incurred in the bankruptcy process

A) III only

B) IV only

C) I, II, and III only

D) I, III, and IV only

E) I, II, III, and IV

17- The observed empirical fact that stocks attract particular investors based on the firm's dividend policy and the resulting tax impact on investors is called the _________________.

A) Residual dividend policy.

B) Compromise dividend policy.

C) Dividend policy irrelevance.

D) Clientele Effect

E) None of the above.

18- Consider the following two statements:

I. Dividends are irrelevant in determining share value.

II. Dividend policy is irrelevant in determining share value.

A) Both statements are definitely false.

B) Both statements are definitely true.

C) Statement I is definitely false; statement II is definitely true.

D) Statement II is definitely false; statement I is true if investors can create homemade dividends.

E) Statement I is definitely false; statement II is true if investors can create homemade dividends.