please answer all questions

"Managers are reluctant to reduce the dividend because a dividend cut is usually interpreted by investors as the result of a downward assessment of the firm's future profitability by managers." True or false? Select one: O a False Ob True "The dividend irrelevance theory says that while dividend policy affects the stock value, it does not affect the cost of equity." True or false? Select one: O a False O b. True Currently the firm has total market value of debt $30 million and total market value of equity $60 million. This capital structure is considered optimal by the management. The optimal capital budget for new investment for the coming period is determined to be $20 million. The total net income is estimated to be $25 million. The firm has 5 million common shares outstanding. The firm pays dividend based on the residual policy. What would the dividend payout ratio be? Select one: O a. 4213 O b. 0% Oc4667 O d. 3991 "If the firm's profit margin is too low, the firm should simply increase its debt ratio." True or false? Select one: O a False Ob. True "In the real world, firms usually have to pay a premium to repurchase the stock, that is, a stock price higher than the current market value in order to get shareholders to sell their shares back to the firm." True or false? Select one: O a False Ob True One year ago you bought the common stock of Taiho at 120 in Tokyo Stock Exchange. The price increased to 130 today. You received a dividend of 30 per share during the period. The exchange rate was *100 = $1 when you bought the stock and it changed to 480 = $1 today. Calculate the realized dollar rate of return on the stock for the year. Select one: O a .6667 Ob. 5771 Oc 7523 O d. 4230 Currently the firm has total market value of debt $10 million and total market value of equity $70 million. This capital structure is considered optimal by the management. The optimal capital budget for new investment for the coming period is determined to be $15 million. The total net income is estimated to be $15 million. The firm has 5 million common shares outstanding. The most recent dividend per share is $1.2 and the management intends to maintain it for the foreseeable future. The management also wants to maintain the optimal capital structure. Would the firm need to raise external equity to satisfy the new investment budget? If your answer is yes, how much would the external equity be? Select one: O a. Yes. The firm would need to raise external equity of $4.125 million. O b. Yes. The firm would need to raise external equity of $3.25 million. Oc. Yes. The firm would need to raise external equity of $2 million. O d. No. The firm would not need to raise external equity. Today: $1.40 = 1 Yesterday: $1.47 = 1 What is the percentage pound appreciation/depreciation against the dollar? Select one: O a. 4.91% appreciation Ob 5.83% depreciation Oc3.11% appreciation Od 4.76%, depreciation Today: $1 = 480 Yesterday $1 = $100 What is the percentage yen appreciation/depreciation against the dollar? Select one: O a 25% appreciation Ob 16.12% appreciation O c. 15.12% depreciation Od 20% appreciation "A firm tends to prefer paying dividends than repurchasing stocks if it has a higher percentage of institutional investors." True or false? Select one: O a True Ob. False