(Write only correct option , dont describe it)

QUESTION 13

1. If a firm uses only short-term debt to finance the fluctuating level of current assets, the firm is said to be using the ____ approach to asset financing.

   	a.	aggressive
   	b.	conservative
   	c.	moderate
   	d.	matching

1 points

QUESTION 14

1. Which of the following is not a dividend policy?

   	a.	Stockholders of small firms favor a dividend policy of retention.
   	b.	Stockholders prefer the delay of the payment of dividends if there is a corresponding increase in capital gains.
   	c.	Stockholders who prefer a high dividend payout are unwilling to pay extra for the stock of companies that provide a higher yield mostly because they are living on a fixed income.
   	d.	Stockholders want dividends and they want them to be consistent.

1 points

QUESTION 15

1. Dividend policy can affect the value of the firm for which of the following reasons?

   	a.	Personal taxes
   	b.	Flotation costs
   	c.	Shareholder transaction costs
   	d.	All of these are correct

1 points

QUESTION 16

1. A firms working capital position is important from an internal and external standpoint. Which of the following is not true?

   	a.	A firms policy often affects its ability to obtain debt.
   	b.	Provisions for a minimum working capital position are often included in restrictive covenants.
   	c.	It measures a firms risk.
   	d.	A working capital position determines its level of common stock sales.