26. Large companies as compared to smaller growth firms a. are less likely to pay dividends b. large companies never pay dividends d.only a chef would know c. are more likely to pay dividends 27. Which of the following is true regarding operating leverage? a. the greater the variable costs, the greater the operating leverage b. the greater the variable costs, the lower the financial leverage c. the greater the fixed costs the greater the operating leverage d. both b and c are correct 28. A stock split a. has no effect on stock price b. increases the number of shares c. lowers the price of the stock d. both b and c are correct 29. Which one of the following indicates a project has a rate of return that exceeds its required return? b. a payback period that exceeds the required period d. a negative accounting rate of return a. a positive NPV c. an IRR less than 1.0 30. T/F Companies usually issue a special dividend at least once per year. 31. T/F A degree of financial leverage of 1 indicates a company has no debt. 32. T/F If you believe the price of a stock is going to go lower you would purchase a call