One example of the hedging principle is to reduce a company's ...

[JMatthes]

One example of the hedging principle is to reduce a company's foreign exchange risk by
  purchasing futures contracts, which are called hedges.
 
  Indicate whether the statement is true or false

Question 2

All of the following may influence a firm's dividend payment EXCEPT
 
  A) investor transaction costs. B) common stock par value.
  C) investment opportunities. D) flotation costs.

[mochi09]

Answer to Question 1

FALSE

Answer to Question 2

B