Exercise 2: TESLA has recently announced that the Board of Directors has approved and declared a five-for-one split of Tesla's common stock in the form of a stock dividend. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020. Explain the main arguments and reasons why the Board of Directors of TESLA has approved this split dividend decision, as well as (i) any risk and/or disadvantage that, in your opinion, may arise from this decision taken by a public company. This exercise assesses the following learning outcomes: Outcome 1: Critically evaluate the dividend payout ratio Outcome 2: Describe and analyze the trade-off between paying dividends and retaining the profits within the company. Outcome 3: Explain the purpose and procedure related to stock repurchases. Outcome 4: Evaluate and advice on a firm going from private to a public company