1. Personal property which has no intrinsic value is called:

a) valued personal use property

b) intangible property

c) tangible property

d) worthless property

2. Which of the following statements is correct?

A. The riskiness of projected EPS can impact the firm's value.

B. Stock price is dependent on the projected EPS and the use of debt but not on the timing of the earnings stream.

C. The use of debt financing has no effect on earnings per share (EPS) or stock price.

D. The optimal dividend policy is the one that satisfies the shareholders because they supply the firm's capital.

E. Dividend policy is one aspect of the firm's financial policy that is determined directly by the shareholders.