1. The Pecking Order Hypothesis suggests that less profitable companies will need more internal funding and will first seek debt financing to avoid asymmetric problems and financing costs.

True False

2. There is a time tag of two days between the act of buying/selling a share of stock and the actual exchange of shares on the settlement date.

True False

3. A regular dividend is intended to discontinue operations of the firm or at least a portion there of.

True False