\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline A & B & C & D & E & F & G & H & I & J & K & L & M & N & 0 & P & Q \\ \hline \multicolumn{17}{|c|}{ A. There is a theoretical argument that dividend policy is irrelevant. However, many investors prefer high dividend paying stocks. } \\ \hline \multicolumn{17}{|c|}{ If this is true, a firm should be able to increase share price by increasing its dividend payout ratio. Explain the fallacy in this argument. } \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & \\ \hline \end{tabular} B. Empirical research indicates that stock prices increase on the day an initial dividend is announced. What does this imply about the signaling content of an initial divdend announcement