1. Channel Setting Instructions for ResponseCard RF 1. Press and release the "GO" button. 2. While the light is flashing red and green, enter the 2 digit channel code (i.e. channel 1 = 01, channel 21 = 21). Channel is 40 3. After the second digit is entered, Press and release the "GO" button. 4. Press and release the "1/A" button. The light should flash yellow to confirm.

2. The dividend payout rate = total dividends/net income (OR dividends per share/EPS) P. 27 1.True 2.False

3. A high dividend payout rate (% of profits paid out to shareholders) is good when a company’s earning growth rate is high? P. 27 1.True 2.False

4. A high dividend payout rate (% of profits paid out to shareholders) is good when a company’s earning growth rate is high? P. 27 1.True 2.False

5. A high dividend payout rate (% of profits paid out to shareholders) is good when a company’s earning growth rate is low and/or the company is in a low growth industry? P. 27 1.True 2.False

6. Which of the following statements are accurate? 1. A stable dividend policy exists when there are no decreases in the commons stock dividend over time 2. Dividends are more valuable to investors in poor times than in boom periods. 1.1 2.2 3.1 and 2 4.Neither 1 nor 2

7. Q1 Dividend = 10 cents per share and your company is in a fast growing industry. Your company is expected to make $1.00 EPS. What dividend per share should be paid? 1.0 cents 2.9 cents 3.10 cents 4.90 cents

8. Dividend Yield = (Annual) Dividends Per Share/Price Per Share. Annual Dividend per share = 15 cents; Price per share = $1.00. Dividend yield = ? 1.10 % 2.15% 3.20% 4.Not enough information 5.None of the above

9. A constant dividend yield is difficult to maintain if the stock price is volatile and should not be a goal? 1.True 2.False

10. Q1= Dividend per share = $1.00, Net Income = $200, 100 shares, Q2= Dividend per share = $1.50, Net Income of $300, 100 shares The dividend payout rate is __________ 1.decreasing 2.increasing 3.flat 4.Not enough information 5.None of the above

11. When a dividend is paid Total Assets __________ Total Liabilities ________ 1.Increase, increase 2.Decrease, flat 3.Flat, increase 4.Decrease, decrease 5.Flat, flat