Which of the following is/are CORRECT regarding stocks? You must select all that apply to get credit. Average dividend payout ratio of U.S. companies has been decreasing over time. If the firm's cost of capital increases, its stock price should decrease, all else the same. Stock splits increase corporations' market capitalization. An already public company issuing more shares to raise capital is referred to as an IPO. Shareholders are the residual claimants of corporations' cash flows. Which of the following is/are correct regarding interest rates? You must select all that apply. Zero-coupon bonds are more sensitive to interest rate changes compared to coupon bonds with the same time to maturity. Bonds with greater default risk typically trade at higher yield-to-maturities. The yield curve is usually upward sloping. Lenders' preference for long duration and borrowers' preference for short duration causes the term premium to be negative. A highly positively sloped yield curve serves as a negative indicator for the future state of the economy