19. Asymmetric information implies that a decrease in dividends a. signals the potential for higher growth in the future. b. is a signal of a potential for poor performance in the future. C. will potentially increase the free cash flow to the firm. 20. The extended DuPont formula provides more clarity than the simple DuPont formula because a. it provides a cleaner view of profitability without the interest and tax effects. b. it separates the profitability from the asset efficiency and the leverage effect. c. it provides a cleaner view of the effect of debt in the capital structure by separating the interest and the leverage effect from the other factors relating to ROE. 21. The calendar dates in Column 1 are potentially significant dates in a typical dividend chronology- Column 2 lists descriptions of these potentially significant dates (in random order). Match the descriptions to the dates. (5 points) 1. Tuesday, April 29 A. Last date to purchase the stock and have the right to receive the dividend 2. Tuesday, May 6 B. Payment date 3. Wednesday, May 7 C. Holder of record date 4. Thursday, May 8 D. Declaration date 5. Tuesday, June 10 E. Ex-dividend date 22. The current stock price for a company is $40 per share, and there are 5 million shares outstanding. The beta for this firm's stock is 1.8, the risk-free rate is 1.5%, and the expected market risk premium is 5%. This firm also has 200,000 bonds outstanding, which pay interest semiannually. These bonds have a coupon interest rate of 8%, 18 years to maturity, a face value of $1,000, and an annual yield to maturity of 7%. If the corporate tax rate is 25%, what is the Weighted Average Cost of Capital (WACC) for this firm? (Answer to the nearest hundredth of a percent, but do not use a percent sign). (5 points)