2. Changes in dividends may be important signals if the market anticipates that the change will be maintained through time. If the market believes that the change is just a rearrangement of dividends through time, then the impact will be small. What do we call the reaction to the information contained in dividend changes? (0.25 pt) . Define and describe that concept from (a) in detail. (0.75 pt) 3. As a financial manager, what do you need to be more concerned with? Net float? available balances? Book balances? All? Or none? Justify your answer. (1 pt) a. 4. Fill in the blank. Recall these concepts as we covered them in class this semester. (1 pt) In finance, we call the fundamental value of a financial instrument or asset, independent of its market value, the of that asset b. The refers to the return that equity investors require on their investment in the firm. c. The ideal mixture of debt and equity for a firm may be referred to as d. and .... are the three key financial management decisions that financial managers are in charge of. 5. Is it always appropriate to use WACC as the discount rate? Justify your answer. (0.75 pt)