1. The theory that investors regard dividend changes as signals of management's earnings forecasts is called the _____.
a. information content hypothesis
b. stock splits theory
c. capital structure effect
d. weighted average hypothesis
e. residual earnings policy
2. The benefits that accrue to a client from using a financial planner to prepare a financial plan include all of the following except:
A. Increased awareness on client's part as to opportunity costs.
B. A financial planner will identify risks in the process.
C. The financial planner is subjective and knowledgeable.
D. A professional planner will include metrics.