Question 2 7 points Save Answer CHAPTER 19 From the list below, select all statements that are TRUE. TRUE FALSE Don't try to click on all four statements! Negative points are given for all incorrectly chosen statements. The implication of "homemade dividend" is that when a firm has excess cash from current year's profits, it is profit-maximizing for the firm to increase its current dividend and decrease its next year's planned dividend. In the next six years, a stock is expected to pay the following dividends: $1, $2, $3, $4, $5, $6, respectively, and no dividends afterwards. The required return is 12%. Given that this stock currently sells for $15, you can conclude that it is currently overpriced. Firms should be indifferent between buying back own stock shares and, instead, using the same amount of money to pay dividends, since the two strategies have identical effects. On slide 30, stockholder would be indifferent between receiving dividends and selling own stock shares if the capital gains tax rate was higher than the dividend income tax rate and equalled 37.5%. A Moving to another question will save this response.