1.For each of the companies below, would you expect to have a high or low dividend payout ratio? Why?

a.A company with a large proportion of inside ownership all of whom are high income individuals

b.A growth company with abundance of good investment opportunities

c.A company with ordinary growth that has high liquidity and excess borrowing capacity

d.A dividend paying company that experiences an unexpected drop in its earnings

e.A company with volatile earnings and high business risk.