QUESTION 6 (20 marks) (a) Many Australian companies with a history of paying regular cash dividends, delayed, cut or stopped paying dividends in mid-2020. Many started paying dividends again late in 2020 or in early 2021. i. Discuss the likely impact on share price of the information content in a company's announcement about the restart of regular dividends. (7 marks) ii. Explain what would have happened to the share price on the company's ex- dividend date, assuming no other events. (3 marks) (b) Assume an Australian company with the following characteristics: Volatile earnings High issuance costs Most company tax paid outside Australia i. Assess the appropriate level of dividends for this company. Clearly explain your reasoning. (7 marks) ii. If the company was to pay dividends, which type of payout policy would you recommend it use and why? (3 marks) QUESTION 6 (20 marks) (a) Many Australian companies with a history of paying regular cash dividends, delayed, cut or stopped paying dividends in mid-2020. Many started paying dividends again late in 2020 or in early 2021. i. Discuss the likely impact on share price of the information content in a company's announcement about the restart of regular dividends. (7 marks) ii. Explain what would have happened to the share price on the company's ex- dividend date, assuming no other events. (3 marks) (b) Assume an Australian company with the following characteristics: Volatile earnings High issuance costs Most company tax paid outside Australia i. Assess the appropriate level of dividends for this company. Clearly explain your reasoning. (7 marks) ii. If the company was to pay dividends, which type of payout policy would you recommend it use and why