The cash savings from reduced dividend payments resulting from a stock repurchase strategy can allow the company to increase its dividends for remaining shareholders.

false

true

Investors in the retirement phase of their life cycle tend to prefer steady cash dividends from firms.

false

true

3

The "term structure of interest rates" is a schedule that tells when a company's bonds mature and shows how many dollars a firm must pay in interest payments.

true

false

4

It is not necessary to understand interest rate movements when deciding the structure of short-term debt relative to long-term debt.

true

false