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NEW QUESTION: 1
Which of the following statements about dividend policy and capital structure is FALSE?
A. Assuming a world of taxes and bankruptcy, there is an optimal capital structure that maximizes earnings per share (EPS) and minimizes the cost of debt.
B. A company's growth rate equals the retention ratio multiplied by return on equity.
C. If the board of directors decreases the target payout ratio, the stock price may increase or decrease.
D. Companies should use the residual dividend model to set the long-run target dividend payout ratio, but should not use it to set the dividend payment in any one year.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The optimal capital structure is the one that maximizes the stock price and minimizes the cost of capital.
The other statements are true. "A company's growth rate equals the retention ratio multiplied by return on equity," is simply the word version of the equation g = (1 - Payout Ratio) * ROE. Know this equation for the exam! A company that uses the residual dividend model to set the dividend payment in any one year will not have a stable payout ratio, and investors will likely demand a higher required return to offset this uncertainty. The higher required return will result in a lower stock price. If the board of directors decreases the target payout ratio, the stock price may increase or decrease because there will be two opposing effects. For example, this may result in a decrease in stock price (due to lower dividend payout, D1), and an increase in the stock price due to increased funds available for reinvestment. Remember: g = (1 - Payout) * ROE. The net effect partially depends on investor's preference for dividends over capital gains or vice versa.

NEW QUESTION: 2
Relatively speaking, firewalls operated at the physical level of the seven-layer OSI model are:
A. None of the choices.
B. almost always less efficient.
C. almost always less costly to setup.
D. almost always less secure.
E. almost always less effective.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Early attempts at producing firewalls operated at the application level of the seven-layer OSI model but this required too much CPU processing power.
Packet filters operate at the network layer and function more efficiently because they only look at the header part of a packet. NO FIREWALL operates at the physical level.

NEW QUESTION: 3
Joint Commission standards require that a complete history and physical be documented on the health records of operative patients. Does this report carry a time requirement?
A. no, as long as it is dictated before surgery.
B. yes, within 24 hours post-surgery.
C. yes, prior to surgery.
D. yes, within 8 hours post-surgery.
Answer: C