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a. Trueskalse Dividends can be negative b. Trueytatsey Market value of equity can be negative c. Frue/ False Dividend growth rate can be negative d.

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a. Trueskalse Dividends can be negative b. Trueytatsey Market value of equity can be negative c. Frue/ False Dividend growth rate can be negative d. True/False Dividends of common stocks are binding e. True/False Dividends of preferred stocks are binding; companies can be in default if they don't pay the preferred slocks' dividends f. True/Talse Hertz ordered 100,000 Tesla vehicles today. This should have no effect on Tesla's stock value today because the cars won't be sold until next year. True/False Hertz ordered 100,000 Tesla vehicles today. This should have no effect on Tesla's stock value because Tesla doesn't pay dividends and has no intentions of paying dividends any time soon. h. Truefalse Firms can simply increase the value of their stock by announcing a higher growth rate of dividends i. TruefFalse Johnny Tobacco Inc has seen its sales drop steadily every year for the past decade, and this drop is expected to continue. Nobody should buy its stock today because the stock will be worth less in a year and the investor would have negative capital gains yield

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