1) How do companies make payouts to their shareholders? How do companies decide how much to pay and in what form?

2)Why are dividend increases good (decreases bad) for shareholders? Why does the stock price typically move more than the dividend change amount?

3)Why would a payout policy have no effect on firm value in an ideal world?

4) How might tax treatment affect payout policy?

5) How does payout policy typically change over the life of a firm?