21. If the risk-free rate is 4%, the market rate is 8% and the beta of a stock is -1.6, its required rate of return equals 10.4%. True b. False a. 22. If the information content, or signaling, hypothesis is correct, then a change in a firm's dividend policy can have an important effect on its stock price and cost of equity. True b. False a. 23. A lower dividend yield exacerbates the principal-agent problem between shareholders and management. True b. False a. 24. If the discount (or interest) rate is positive, the present value of an expected series of payments will always exceed the future value of the same series. True b. False a. 25. If a bank uses quarterly compounding for savings accounts, the nominal rate will be greater than the effective annual rate. True b. False a