A major quoted company has had a policy of reinvesting earnings and paying very little in the way of dividends for many years. The company now finds itself with a significant cash balance and very few attractive projects in which to invest. The directors are debating the merits of paying a substantial dividend. (i) (ii) Explain why the potential tax implications of receiving a dividend might make this proposal unpopular with this company's shareholders. [8] Explain why it might not be viable for the company to simply retain the funds and to wait until some attractive investment opportunities arose. [8] (iii) Explain why a quoted company might choose to release commercially sensitive information about investments and performance to the financial markets. [4]