Q4. (a) In spite of the theoretical argument that dividend policy should be irrelevant, the fact remains that many companies do pay dividends to the shareholders. Please explain. (10 marks) (b) The liability section of the Myburger Corporation balance sheet is as follows. Debt Common Stock 1,800,000 Par (2 par, 100,000 shares) Capital in excess of par value Retained Earnings 200,000 400,000 900,000 3,300,000 The current market price of the common shares is 20. Reconstruct the financial statement assuming that (a) A 15 percent stock dividend is issued and (b) A two-for-one stock split is declared. (5 x 2= 10 marks)