24.SureBet Corporation has total assets with a market value of $15 million:$3 million in cash and $12 million in other assets.The market value of its debt is $3 million;of its equity $12 million.There are 1,000,000 shares of SureBet common stock outstanding,each with a market price of $12.If SureBet repurchases shares worth $2.4 million,the resulting number of shares outstanding is with a price per share of (a)200,000,$15 (b)200,000:$12 (c)800,000:$15 (d)800,000:$12 Answer:(d) 25."Frictions"that can cause a firm's dividend policy to have an effect on the wealth of shareholders include: (a)regulations (b)taxes (c)cost of external finance (d)all of the above Answer:(d) 26.Outside investors may interpret an increase in a corporation's cash dividend as sign. (a)a positive sign (b)a negative sign (c)an indifferent sign (d)bor c Answer:(a) 27.From the perspective of a shareholder with regard to personal taxation,it is always for the corporation to pay out cash by (a)better;cash dividends (b)worse;cash dividends (c)worse;share repurchases (d)it varies according to the situation Answer:(b) 9-79-7 24. SureBet Corporation has total assets with a market value of $15 million: $3 million in cash and $12 million in other assets. The market value of its debt is $3 million; of its equity $12 million. There are 1,000,000 shares of SureBet common stock outstanding, each with a market price of $12. If SureBet repurchases shares worth $2.4 million, the resulting number of shares outstanding is ________ , with a price per share of ________. (a) 200,000; $15 (b) 200,000; $12 (c) 800,000; $15 (d) 800,000; $12 Answer: (d) 25. “Frictions” that can cause a firm’s dividend policy to have an effect on the wealth of shareholders include: (a) regulations (b) taxes (c) cost of external finance (d) all of the above Answer: (d) 26. Outside investors may interpret an increase in a corporation’s cash dividend as ________ sign. (a) a positive sign (b) a negative sign (c) an indifferent sign (d) b or c Answer: (a) 27. From the perspective of a shareholder with regard to personal taxation, it is always ________ for the corporation to pay out cash by ________. (a) better; cash dividends (b) worse; cash dividends (c) worse; share repurchases (d) it varies according to the situation Answer: (b)