5. Based on the industry life-cycle, please indicate whether each firm would be more or less likely to pay a dividend. a. New, quickly growing technology firm b. Established firm in a profitable, slow-growing industry 7. Increasing operating leverage results in: (5 pts) a. A lower breakeven point b. Higher variable costs c. Greater operating income at higher levels of output d. Smaller losses at low levels of sales 8. Which of the following is a reason that an investor would prefer investing in a firm that pays dividends. a. The ability of investors to create a homemade dividend. b. Capital gains are not taxed until they are realized. c. Dividends are taxed at a lower rate than long-term capital gains. d. The "bird-in-the-hand" effect of dividends