1.Dividends are "visible" because

a.The SEC is advised about dividend payments before they occur.

b.Investors are diligent in keeping track of dividend payments.

c.Dividend payments are noticed by investors when they are received.

d.Dividends are reported in the WSJ.

2.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.