Question 1 0.5 out of 0.5 points The total return on a share of stock to the dividend yield less any commissions paid when the stock is purchased and sold. Question 2 0.5 out of 0.5 points Preferred stock is a hybrid-a sort of cross between a common stock and a bond--in the sense that it pays dividends that increase annually like a stock but its payments are contractually guaranteed like interest on a bond. 0.5 out of 0.5 points Question 3 If a firm adopts a reside distribution policy, distributi are deter firm's investment opportunities, the lower its payout ratio should be ned as a residual after funding the capital budget. Therefore, the better the Question 4 0.5 out of 0.5 points The cost of debt is equal to one minus the marginal tax rate multiplied by the average coupon rate on all outstanding debt. Question 5 0.5 out of 0.5 points Classified stock differentiates various classes of common stock and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control Question 6 0.5 out of 0.5 points Which of the following should not influence a firm's dividend policy decision