Match each term with one deffinition. All definitons are used only once.

Dividend irrelevance theory This theory argues that investors do not care about a firm's dividend policy since they are concerned with the total return generated by the firm, not whether the return is derived from dividend income or capital gains. Information content hypothesis This program automatically uses a shareholder's dividends to acquire additional shares of a firm's outstanding or newly issued stock. Holder-of-record date According to this policy, the firm's dividend is calculated as the difference between the firm's net income and the retained earnings needed to finance the firm's optimal capital budget. Residual dividend policy Under this theory, management is reluctant to increase their stock's annual dividend unless they have expectations of increased sustainable future earnings from which to pay the dividends. Stock split A dividend that is paid in the form of additional shares of the paying firm's stock rather than in cash. Constant payout ratio This dividend policy maximizes the value of a firm. Dividend reinvestment plans If a shareholder owns a firm's shares on this date, he or she will receive the firm's next declared dividend. Optimal dividend policy Under this dividend policy, a firm pays a constant proportion of its net earnings as dividends each year. Stock dividend Under this activity, a firm with 100,000 shares of outstanding stock, each trading for $44 per share, doubles the number of shares outstanding, causing the per-share market value of the shares to decrease to $22