16. The suggests that investors are indifferent between dividends vs. retention-generated capital gains. A. Dividend Irrelevance Theory B. Dividend Preference or "Bird-in-the-Hand" Theory C. Tax Effect Dividend Theory D. Capital Structure Ratio Theory 17. The view that investors perceive dividend changes as signals of management's view of the future is known as the A. Residual Distribution Model. B. Capital Structure Ratio Theory C. Information Content or Signaling Hypothesis D. Proxy Model 18. Advantage(s) of the "Residual Distribution Model" for dividend payments include A flotation fees to investment bankers for new common stock issues are minimized. B. this model helps to minimize the value of the firm's "Weighted Average Cost of Capital," as internal equity funds are used prior to issuing new common equity C. this funding method maximizes the firm's debt financing. D. A and B. 2 E A and B and C