All of the following are indirect bankruptcy costs EXCEPT one. Which one?

a. Redirection of manager time from making money to handling the bankruptcy details.

b. The opportunity cost of holding too much cash on the balance sheet.

c. Loss of key employees due to general uncertainty.

d. Having to forego positive NPV projects because of general uncertainty.

e. Increased legal fees associated with the bankruptcy.

3. Maintaining a consistent dividend level (with slight increases) would NOT be important to a company using

a. the homemade dividend policy

b. the clientele dividend policy

c. the residual dividend policy

d. the compromise dividend policy

e. the target dividend policy