(4) What results have empirical studies of the dividend theories produced? How does all this affect what we can tell managers about dividend payouts? b. Discuss the effects on distribution policy consistent with: (1) the signaling hypothesis (also called the information content hypothesis) (2) and the clientele effect.

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?