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3. If you bought a share of common stock, you would probably expect to receive returns in the form of dividends plus an eventual capital

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3. If you bought a share of common stock, you would probably expect to receive returns in the form of dividends plus an eventual capital gain. a. Elaborate how would the distribution between the dividend yields and capital gain yields be influenced by the firm's decision to pay dividend rather than to retain and reinvest more of its earnings for the future. [20 marks] b. Discuss how such decision affects the THREE (3) human attitude towards investments' risks. [20 marks) -END OF PAPER

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