QUESTION 4 [25 MARKS]

4.1 Discuss the important factors relating to any particular source of new finance from the point of view of the enterprise and its existing owner(s) as well as the providers of new finance? (19 Marks)

4.2 Financial advisors have to exercise their judgements in establishing the correct dividend pay-out policy In light of the above statement, briefly discuss the factors that need to be considered in formulating an appropriate dividend policy. (6 Marks)