2- A method of distributing a firm's earnings to shareholders such that the shareholders can select when they want to claim the income for tax purposes is a: A) Stock split B) Regular cash dividend. C) Stock dividend. D) Liquidating dividend. E) None of the above. 3- Which of the following are not true given a compromise dividend policy? I Firms try to avoid dividend cuts. II. Firms prefer selling new equity as frequently as possible. III. Firms prefer to maintain a target debt-equity ratio. IV. Firms prefer limiting NPV projects to pay dividends. A) I and III only B) II and III only C) II and IV only D) I, III, and IV only E) I, II and III only 4- Suppose XYZ Corp. believes its recent stock price increase has made the price of the stock too expensive for the average investor. To remedy this situation, XYZ could A) pay a liquidating dividend B) complete a stock split C) pay a regular cash dividend D) execute a stock repurchase E) none of the above