1. The alternative to using only comparable firms in the same industry is to study the entire population of firms and try to estimate the variables that cause differences in dividend payout across firms. The determinants would include
a. Growth opoortunites b. Reveune c. Operating leverage d. Two of the above e. All of the above
2. From an emprical survey, the authors conclude that the rules of the game for dividends are the following: 1 - do not cut dividends, 2 - have a dividend policy similar to your peer group, 3 - preserve a good credit rating, 4 - maintain flexibility, or 5 - do not take actions that reduce earnings per share.
a. 1 & 2 b. 1 through 5 c. 1 through 4 d. 1 throught 3 e. None of the above.