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NEW QUESTION: 1
Modigliani and Miller (MM) argued that dividend policy is irrelevant. On the other hand, Gordon and Lintner (GL) argued that dividend policy does matter. GL's argument rests on the contention that
A. investors, because of tax differentials, value a dollar of expected capital gains more highly than a dollar of dividends.
B. k(s) = D1/P0 + g is constant for any dividend policy.
C. because of perceived differences in risk, investors value a dollar of dividends more highly than a dollar of expected capital gains.
D. none of the answers are correct.
E. most investors will reinvest rather than spend dividends, so it would save investors money (taxes) if corporations simply reinvested earnings rather than paid them out as dividends.
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.

NEW QUESTION: 2
Which NetApp management tool verifies the disk-shelf cabling of an existing NetApp cluster?
A. OnCommand System Manager
B. OnCommand Unified Manager
C. Config Advisor
D. System Setup
Answer: C
Explanation:
NetApp Config Advisor is a tool that will allow you to check the health and ensure your
NetApp infrastructure is adhering to NetApp best practices.
Once the Config Advisor query finishes, view the results and take corrective action on any configuration issues:

References: http://bestpracticetips.com/tag/config-advisor/


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