A stable dividend policy is crucial for a firm in term of shareholders perception of the companys performance.

Required:

1. Critically examine, from your point of view, the four most relevant theories that explain firms dividend policy (at least one theory should be related to behavioural finance). Each theory description should include the main assumption(s) of the theory, its main idea, its main result(s)/prediction(s) and its main weakness(es).

2. Explain zero-dividend puzzle.

3. Present an Excel file with dividends for Apple between 2000-2017 and create a chart.

4. Using data in question c) provide an example that can illustrate at least two theories described in a)? Use articles/news or other information to support your conclusions. Which theory(ies) is most powerful in your opinion?