Question 1. (10+10) I. Briefly explain following questions a) Difference between stocks dividend and stock repurchase. b) Payback period gives too much weightage to the cash flows that occur after cutoff period. Justify your answer whether the statement is correct of not? c) If an investor require high rate of return and dividend growth is reversed what happed to market price of a stock? d) If corporations' tax rate were cut off half, what would be the effect on debt financing? e) Difference between horizontal and vertical mergers