Deciding to create a dividend policy

Question

Question 1: The major, overall argument against the "residual theory of dividends" is

a the uncertainty surrounding capital investment projects.
b the lack of ability to adequately measure corporate investment returns.
c the diversity of stockholders and their potential investment returns.
d its failure to consider stockholder preferences.

Question 2: If a Czech crown is equal to $.04 cents U.S., the U.S. dollar is equal to how many Czech crowns?

• 0.40
• 4.00
• 25.00
• 400.00

Question 3: What are the advantages and disadvantages of debt?

Question 4: Why is the cash position of a company important, when deciding to create a dividend policy?