****PLEASE DO NOT ANSWER IF YOU ALREADY DID. I'm getting a second opinion on this. Thanks.

1. Suppose that Return on Equity (ROE) is a positive constant. Which sentences are correct? A. Company keeping a lower dividend payout ratio has a higher intrinsic value per share. B. Company keeping a lower dividend payout ratio has a higher present value of future growth opportunities. C. Company keeping a lower dividend payout ratio has a higher dividend growth rate. 1) A only 2) C only 3) B and C only 4) A and B and C 5) None of above 2. Which sentences are correct when applying standard constant growth rate in dividend discount model? Dividend yield grows at a rate (g) B. Dividend is expected to be distributed in (n) years after and n is a big number C. Required rate of return is smaller than dividend growth rate (9) 1) A only 2) B only 3) A and B only 4) B and C only 5) A and B and C 3. What does not have an impact on the shareholder's required rate of return? 1) Business nature of a company 2) Level of financial leverage of a company 3) Level of risk aversion or preference of shareholders 4) The number of outstanding shares of a company 5) Risk free interest rate