A. TRUE / FALSE QUESTIONS Write either "True" or "False" on the blank preceding each question 1. In general, corporate dividend payout rates have declined, while stock repurchases have increased 2. The "Dividend Preference" or "Bird-in-the-Hand" Theory suggests that investors might think that dividends are more risky than future capital gains 3. Capital gains taxes are deferred until the gain is realized when the stock is sold by its owner 4. Generally, a corporation's past stock dividend policies have no impact on its current clientele of stock investors. 5. A disadvantage of the Residual Dividend Policy" is that it typically results in variable dividends being paid to the firm's shareholders from year to year. 6. The Securities & Exchange Commission (SEC) requires that a corporation follow through and complete in full any announced intent to re-purchase its own stock shares. 1. When a stock re-purchase occurs, the number of shares outstanding in the market declines. 8. In a 4:3 stock split, a shareholder will end up with 4 shares for each 3 shares that were originally owned