11/8/22, 7:13 PM Lecture Assessment 2022-11-07: [1221_INFIMAN_EB2] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES

Lecture Assessment 2022-11-07

Due
Nov 10 at 6pm
Points
5
Questions
5
Available
Nov 8 at 10am - Nov 10 at 6pm
Time Limit
None

Instructions
Identify whether the following statements are true or false. 

Attempt History
Attempt Time Score
LATEST Attempt 1
27 minutes 5 out of 5

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Correct answers are hidden.

Score for this quiz:

5 out of 5
Submitted Nov 8 at 7:13pm
This attempt took 27 minutes.

Question 1 1
/ 1 pts

Optimal dividend policy must strike a balance between current dividends

and future growth rate that will maximize stock price (allow for capital
gains). 

 
True

 
False

Question 2 1
/ 1 pts

https://dlsu.instructure.com/courses/105708/quizzes/278981 1/3
11/8/22, 7:13 PM Lecture Assessment 2022-11-07: [1221_INFIMAN_EB2] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES

Under the bird-in-the-hand theory, investors are indifferent between

dividends and retention-generated capital gains. 

 
True

 
False

Question 3 1
/ 1 pts

An increase in dividend is often accompanied by an increase in the price

of stock while a dividend cut generally leads to a stock price decline. 

 
True

 
False

Question 4 1
/ 1 pts

Under the dividend residual model, the entire capital budget is deducted
from net income to determine the amount available for dividends. 

 
True

 
False

Question 5 1
/ 1 pts

https://dlsu.instructure.com/courses/105708/quizzes/278981 2/3
11/8/22, 7:13 PM Lecture Assessment 2022-11-07: [1221_INFIMAN_EB2] - FUNDAMENTALS OF FINANCIAL MANAGEMENT FOR IES

Under the dividend residual model, pay dividends if there is an excess of

earnings after allocating to the capital budget. 

 
True

 
False

Quiz Score:
5 out of 5

https://dlsu.instructure.com/courses/105708/quizzes/278981 3/3