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NEW QUESTION: 1
Which of the following applications is based on the TCP protocol? (Multiple choice)
A. TFTP
B. HTTP
C. FTP
D. Ping
Answer: B,C

NEW QUESTION: 2
A decrease in a firm's willingness to pay dividends is likely to result from an increase in its ________.
A. stock price
B. access to capital markets
C. collection of accounts receivable
D. profitable investment opportunities
E. earnings stability
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Two points must be kept in mind when deciding how much cash should be distributed to stockholders:
1. The main objective is to maximize shareholder value.
2. The cash flows generated by the firm belong to its shareholders.
The optimal payout ratio is a function of 4 factors:
1. Investors' preferences for dividends versus capital gains.
2. The firm's investment opportunities.
3. The firm's target capital structure.
4. The availability and cost of external capital.
The last 3 steps are combined in the residual dividend model, which is a model in which the dividend paid is set equal to the actual earnings minus the amount of retained earnings necessary to finance the firm's optimal capital budget.

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