. All investors have the same preference for dividends.

a. True

b. False

17. All investors prefer dividends over stock repurchases.

a. True

b. False

18. Changes in dividend policy is often seen as a signal about a firms future prospects.

a. True

b. False

19. Historically in the U.S., stock splits were common when a firms stock had risen significantly, and reverse splits occurred when a firms stock had fall significantly.

a. True

b. False

20. Changes in tax policy on dividends has no impact on whether dividends are desirable for all investors.

a. True

b. False

21. For many firms, a major reason to hold cash is for use in transactions.

a. True

b. False

22. If a firm has a large percentage of accounts under 30 days old, then it is a sign that the firm's receivables management does not need to be reviewed and improved.

a. True

b. False