QUESTION 10 Symmetric information is defined as the situation in which O a. employees have different (better) information about their firm's prospects than managers b.employees and managers have identical information about the firm's prospects Og managers have different (better) information about their firm's prospects than outside investors d. investors and creditors have identical information about the firm's prospects e investors and managers have identical information about the firm's prospects QUESTION 11 Everything else equal, generally a firm will set a low dividend payout ratio and finance capital budgeting projects using retained earnings rather than through the sale of new common stock when the a, firm has fewer acceptable capital budgeting projects than in previous years. b. senior management team wants to dilute the firm's ownership OC. firm faces no constraints with regard to the distribution of earnings. d. firm's annual earings increase. e. flotation costs associated with a stock issue are high The situation in which managers have different (better) information about their firm's prospects than outside investors is known as information a. unfavorable b.favorable oc asymmetric O d. symmetric O e contingent