Despite the continued debate on the relevance of dividend, what is observed in practice is that firms do pay some dividend and try to maintain them at stable levels. Reduction in dividends seems relatively a rare occurrence. In view of this, and as a new recruited Finance and administration Manager

a)Elaborate on the factors you must base when deciding whether or not to pay out dividends under the current prevailing conditions?(10 Marks)

b)Justify five schemes of dividend payment you may be adopted for paying out dividends(10Marks)

c)Advise your board of Directors on any three possible dividend payments patterns a firm can follow in an attempt to create a stable level of dividend in the firm.(05 Marks)