Question 23 Not yet answered Points out of 3.0 Flag question Why does a stock repurchase improve the after-tax position of stockholders over cash dividends? Select one: O a. The theoretical increase in value is taxed at the lower capital gains rate O b. Reduced shares outstanding increase earnings per share C.Cash dividends are taxed as ordinary income O d. All of the above O e. None of the above Question 24 The required rate of return on common equity is intended to provide answered Select one: Points out of 3.0 a. compensation for expected inflation only. O b. a premium for incremental risks assumed. OC. a minimum real rate of return. d. compensation based risk assumed. e.compensation for only risk assumed above and beyond the risk free asset. Flag question A monthly payment on a home mortgage is an example of a O O O O a' present value b. annuity of a future value c. present value of an annuity d. annuity of a present value In the context of mergers and acquisitions, a white knight is O a. a helpful investment banker that makes sure the merger is successful. O b. a third company that buys the acquisition target before an unwanted suitor carn O c, an investor who pays a high price to buy at least 5% of the shares of the acquisition target. O d. a commercial banker that provides a guarantee that the financing for the merger will be available O e. An insider that promotes the merger to the company's shareholders. 0 2 section of the firm's statement of cash flows? O O O O O a. cash flows from operating activities. b. cash flows from investing activities. c. cash flows from financing activities. d. cash flows from purchasing activities. e. cash flows from selling activities