The bird-in-the-hand dividend theory supports which view of the ...

[panfilo]

The bird-in-the-hand dividend theory supports which view of the effect of dividend policy on
  company value?
 
  A) Constant dividends increase stock values. B) Low dividends increase stock values.
  C) High dividends increase stock values. D) A firm's dividend policy is irrelevant.

Question 2

The percent of sales method is a method of preparing pro forma financial statements. All of the
  following would be examples of how the percent of sales method is developed EXCEPT:
 
  A) Forecast assets by applying a percent of projected sales, using current year's assets as a
  percent of current year's sales.
  B) Forecast retained earnings by applying a percent of projected sales, using current year's
  retained earnings as a percent of current year's sales.
  C) Approximate liabilities by applying a percent of projected sales, using the last five-year
  average of liabilities as a percent of sales.
  D) Forecast expenses by applying a percent of projected sales, using last year's expenses as a
  percent of last year's sales.

[medine]

Answer to Question 1

C

Answer to Question 2

B