i) Explain the likely effects on dividend-payout ratios of each of the followings.

a)Interest rates increase substantially;

b)Company profitability increases;

c)Prospectus requirements are tightened, increasing the cost of share issue;

d)Personal income (but not capital gains) tax are increased;

ii) The imputation system encourages payment of high dividend. Companies that pay significant dividend may be left short of cash. Comment on this statement.