1. How does each of the following influence the dividend policy of a company: Profitability and...

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1. How does each of the following influence the dividend policy of a company: Profitability and liquidity Legal and contractual constraints Investment opportunities Industry practices Shareholder expectations. 2. Over the past ten years Kingston Ltd has paid a dividend of 8% annually. For the year ended December 2014, the company did not propose any dividend. For the most part investors in the company consist of pension funds, retired senior citizens and charities. Some shareholders have become restive and have raised their concern to the directors of the company at the annual general about the change in the dividend. Which theory of dividend policy should the directors consider when evaluating their change in dividend policy? Explain this theory. 3. Explain the following theories of dividend policy: Residual theory Bird-in-the-hand theory Dividend signaling theory 4. State and explain four types of dividend policy commonly found in practice. 5. Why might a company's management and shareholders prefer to have a stable dividend policy? 6. What is goodwill? Briefly state how it is treated according to the provisions of IAS 38. 1. How does each of the following influence the dividend policy of a company: Profitability and liquidity Legal and contractual constraints Investment opportunities Industry practices Shareholder expectations. 2. Over the past ten years Kingston Ltd has paid a dividend of 8% annually. For the year ended December 2014, the company did not propose any dividend. For the most part investors in the company consist of pension funds, retired senior citizens and charities. Some shareholders have become restive and have raised their concern to the directors of the company at the annual general about the change in the dividend. Which theory of dividend policy should the directors consider when evaluating their change in dividend policy? Explain this theory. 3. Explain the following theories of dividend policy: Residual theory Bird-in-the-hand theory Dividend signaling theory 4. State and explain four types of dividend policy commonly found in practice. 5. Why might a company's management and shareholders prefer to have a stable dividend policy? 6. What is goodwill? Briefly state how it is treated according to the provisions of IAS 38.