Questions:

1.Comment on Nasir's suggestion of not paying dividend. What are the pros and cons of such a policy?

2.Critically evaluate the suggestion of Salem of the irrelevancy of dividend and its impact on the value of the company.

3.Explain with an example the opinion of Ali "Why don't we use homemade dividends"

4.Evaluate the two financing approaches suggested by Salem and explain the consequences of the capital structure of the company on both alternatives.

5.Apply the percent of sales method (EFN) to compute the external fund needed under the current condition of not paying dividends. Advise the management on the suitable dividend theory.