Question 2: James Yellos, the founder of Tamebook LLC, has been implementing some proactive financial management strategies which resulted in sustainable net earnings over the last three years. Following a thorough consultation with the Chief Financial Controller, Wayne Sherry, James has now decided to review its current dividend policy, with the objective of giving more to shareholders. The earnings per share for the coming year is expected to be $25, and the current stock price is $100. Dividends per share for the next financial year is expected to be $20. The company will continue to provide only one dividend per year. Wayne intends to revise the dividend payout to 50%. It is expected that the stock price will change after the new dividend policy is implemented. You can assume a return on investments of 10%, both for current and future projects at Tamebook and that the firm's cost of financing would remain constant indefinitely ta) Evaluate the impact of the change in dividend policy of the stock price of the firm. Explain your answer carefully and show your workings. (8 marks] (b) Recommend what kind of dividend policy approach would a newly established firmadopt compared to a competitor which has been in the industry for a long time and has been enjoying consistently earnings growth [2 martes) Question 3: Cooper and Cooper LLC are currently interested in buying a bond today. It pays a semi-annual coupon MacBook Pro s DSFGHJKLJ command optior