1. Which of the following is not consistent with the life cycle theory of a dividend policy?

In the growth stage, a company could pay a low dividend

In the maturing stage, a company should pay dividends

In the infancy stage, a company should pay dividends

In the declining stage, a company should pay dividends

2. Marcus Corporation currently sells 150,000 units a year at a price of $4 per unit. Its variable costs are 30% of sales, and its fixed operating costs are $300,000. What is Marcus’ breakeven point in sales?

$481,289

$428,571

$600,000

$300,000