15. A higher-than-expected dividend may be a signal that believes and future profits will rise d. a & b e. b & e smaller than e g none of the above 16. Explain in words how Modigliani and Miller argue for dividend irrelevance 17. According to the Modigliani and Miller Dividend Irrelevance argument, the fundamental variables affecting company valuation are: a. Earnings b. Dividends c. Salaries & benefits d. Revenues e. None of the above 18. Leverage is helpful to a company as long as a. Return on assets is greater than the pre-tax cost of debt b. EBITITA is greater than the cost of capital c. Final profit margin is greater than gross proft d. None of the above. 19. A firm's cash conversion cycle can be shortened by: a. Decreasing inventory turnover b. Decreasing average collection period C. Decreasing the time to payment of accounts payable