1) Assume that you are a financial manager of an incorporation, and that you are going to establish the companys financing mix using industry norms. How would you do it? Explain in detail.

2) Does the dividend policy matter to stockholders? There are five theories mentioned in your textbook: the residual dividend theory, the clientele effect, the information effect, agency cost, and the expectation theory. Which one(s) do you think more appealing for you? Explain in detail.