(a)

Explain why investors often see a cut in a companys dividend payment as a negative signal.

(b)

If a company is planning a cut in its dividend how should it go about this?

What are the potential consequences for companies whose dividend policies are out of step with

their financial performance?

(d)

What impact is a recession likely to have on companies dividend yields?

(e)

Is a high dividend yield a good thing or a bad thing for investors?

(f)

Discuss the practical issues to be considered by a company when deciding on the size of

its dividend payment.

(g)

XYZs current cum dividend share price is 3.45 and the company has just announced a dividend per share of 20p. At what rate do investors expect dividends to grow in the future if the current share price is considered to be fair and if shareholders require a rate of return of 15 per cent?

(h)

Given the assumptions made by Miller and Modiglianis dividend irrelevance theory, do you consider their conclusions to be logical?