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NEW QUESTION: 1
Which of the following statements is most correct?
A. Stock splits reduce the number of shares outstanding.
B. A key advantage of the residual dividend policy is that it usually results in a stable dividend policy, which is attractive to investors.
C. The bird-in-hand theory of dividends suggests that firms that increase their dividend payout should expect to realize a higher share price and a lower cost of equity capital.
D. A reduction in the capital gains rate should work to discourage corporations from repurchasing their shares.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The main conclusion of MM's irrelevance theory is that dividend policy does not affect the required rate of return on equity. Gordon-Lintner disagreed stating that k(s) decreases as the dividend payout is increased because investors are less certain of receiving the capital gains which should result from retaining earnings than they are of receiving dividends. They said that investors value expected dividends more highly than expected capital gains because the dividend yield is less risky than the growth component in the total expected return equation, k(s) = D1/Po + g. MM disagreed and theorized that k(s) is independent of dividend policy, implying that investors are indifferent between dividends and capital gains. MM called the Gordon-Lintner's study the bird-in-the- hand fallacy, because MM thought the riskiness of the firm's cash flows to investors in the long run is determined by the riskiness of the operating cash flows, not by dividend policy.
NEW QUESTION: 2
What is the purpose of the uncontrolled port in the 802.1X authentication process?
A. The authentication server blocks this port if authentication is unsuccessful
B. The authenticator and the supplicant use this port to exchange EAP packets
C. The authenticator uses this port to communicate with the authentication server
D. The supplicant uses this port to send and receive data after the authentication process is successful
Answer: B
NEW QUESTION: 3
You have an Azure subscription that contains the resources in the following table.
VM1 and VM2 are deployed from the same template and host line-of-business applications accessed by using Remote Desktop. You configure the network security group (NSG) shown in the exhibit. (Click the Exhibit button.)
You need to prevent users of VM1 and VM2 from accessing websites on the Internet.
What should you do?
A. Associate the NSG to Subnet1.
B. Disassociate the NSG from a network interface.
C. Change the DenyWebSites outbound security rule.
D. Change the Port_80 inbound security rule.
Answer: A
Explanation:
Explanation
You can associate or dissociate a network security group from a network interface or subnet.
The NSG has the appropriate rule to block users from accessing the Internet. We just need to associate it with Subnet1.
References: https://docs.microsoft.com/en-us/azure/virtual-network/manage-network-security-group