Generally, the top management of companies prefers to pay stable dividends to avoid sending the wrong messages to their shareholders and the market in general. Select one:

a. TRUE

b. False

Financial risk can be defined as: Select one:

a. additional risk when direct costs are higher in the company's cost structure

b. additional risk when indirect costs are higher in the company's cost structure

c. uncertainty of future operating profit

d. the additional risk concentrated in common shareholders when financial leverage is used