Assuming that economic conditions remain stable, any management ...

[HCHenry]

Assuming that economic conditions remain stable, any management action that would cause current and prospective stockholders to raise their dividend expectations should decrease a firm's value.
 
  Indicate whether the statement is true or false

Question 2

The cost of a particular source of capital (debt, preferred stock, common stock) is equal to the
  investor's required rate of return after adjusting for the effects of both flotation costs and corporate
  taxes.
 
  Indicate whether the statement is true or false

[dantucker]

Answer to Question 1

FALSE

Answer to Question 2

TRUE