Name 11. A company that follows a regular dividend policy A. intends for its dividends to be a constant percentage of its eanings B. intends for its dividends to result in a constant dividend yield. C. will only pay dividends if there is surplus cash. D. intends to pay a regular dividend and gradually increase it. The dividend theory that dividends are irrelevant to stock values is based 12. upon A. dividends providing a certain return to the investor B. dividends resulting in a higher reinvestment ratio in the company. C. the investment decision being the primary determinant of stock value. D. None of the above. 13. The contribution of an investment to the value of the firm is A. the cash the firm will receive from its investment. B. the present value of cash flows less the future value of cash flows. C. the profit the firm will make on its investment. D. what net present value represents. 14. A vendor is offering cash discount terms of 2/15, net 35. This means A. a 2% discount can be taken if paid in 35 days. B. a 15% discount can be taken if paid in 35 days. C. a 35% discount can be taken if paid in 15 days. D. a 2% discount can be taken if paid in 15 days. 15. The internal rate of return is A. the discount rate. B. the required rate of return. C. the return on common equity. D. the interest rate that results in a net present value of zero for an investment project. 16. A company's operating cycle is the time A. from paying bills for inventory until cash is received from sales. B. from the receipt of inventory until cash is received from sales. C. from making the sale until cash is collected from the sale. D. from the receipt of resources until sales are made