Or. Yogous meser Aobsunish You have 90 minutes to answer all 20 questions. You should aniwer is the anwer sheet provides. Tou can use a calculator, The questioe's erade a provided at the start of the question. Good inck 8 1. (1 point) The ex-dividend date is the date: A. on which recipients of the dividend are determined. B. the dividend is paid. C. the dividend is declared. D. which no longer includes dividend payments for stock bought on that date E. All of the answers are correct 2. (I point) The residual theory of dividend policy assers that: A. sufficient dividends are paid to maintain a stable total dividend payment-any roidual is invested internally by the firm. B. sufficient dividends are paid to maintain a stable dividend pryout ratio-any residual is invested internally by the firm. C. dividends are paid out of the residual remaining afeer intemal investments by the firm. D. dividend payments are adjusted to maintain dividends at a constaat percentage of total cash flows. E. None of the answers is correct. 3. (I point) According to the free-cash flow (Agency) bypothesis regarding dividends: A. Firms should keep paying dividends because investors dislike dividend cuts. B. Firms should invest frec-cash flows in the firm and not pay theen as dividends. C. Firms should borrow more debt and use the proceeds to pay dividends. D. Firms should split their stocks to increase the liquidity of their stock in the market. E. Firms should pay free-cash flow as dividends because otherwise managers will invest them in negative NPV projects. 4. (1 point) All else equal, a stock dividend will the number of shares outstanding and the value per share. A. increasc, increase B. increase; decrease C. not change, increase D. decrease, increase E. decrease; decrease 5. (2 points) Yaqoub Company has just declared a I5\% stock dividend. Immediately prior to the stock dividend, the stock was sciling for $23 and had a P/E ratio of 14 . Calculate the poststock dividend price of Yaqoub's stock. A. $26.45 B. $20.00 C. $26.22 D. $20.18 E. $26.18