This question has been answered
Question

1.    Considering dividends, all of the following are true except:

a.    Modigliani & Miller say that dividends don't matter when regarding company valuation.

b.    Dividends are a zero NPV transaction.

c.    Investors are indifferent to dividends because, if they don't pay dividends, they can always sell of part of their stock instead.

d.    Dividends affect stock valuation because of liquidity destruction.


2.    Which of the following is NOT a component of free cash flow?

a.    Earnings before Interest and Taxes

b.    Depreciation

c.     Capital Expenditure

d.    Inventory

e.    Net Working Capital

Answered by Expert Tutors
Subject: Business, Finance
1.Considering dividends, all of the following are true except: a.Modigliani & Miller say that dividends don't matter when regarding company
Get unstuck

204,222 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses