1. MM suggested that although dividend policy should be irrelevant to firm value, some shareholders...
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Finance
1. MM suggested that although dividend policy should be irrelevant to firm value, some shareholders may prefer particular pay-outs. Preferences may depend on investors tax brackets or the timing of payments. Name this theory.
Clientele Effect
Catering Theory
Signaling Theory
Agency Theory
2.
On this date a list is prepared of all shareholders entitled to dividend
Declaration date
Ex-dividend date
Record date
Payment date
QUESTION 5
When two firms agree to become one firm.
Merger
Franchise
Joint Venture
Business Alliance
If markets are efficient, a bidder which offers a price to a target which is above the market price is making an error. Bidder may be willing to do this due to over-confidence of the bidding firms management, which may think it knows more than the market. Which theory of MA is this referring to?
Efficiency
Synergy
Hubris
Agency Explanations
Answer & Explanation
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