Si ecam ACC00716 References Mailings Review View Help p Search Karamjit Man CM - A Aa- E.E.EE & T A.P.A. Share Comments 1 Normal No Spac Title Subtitle Subtle Em Emphasis Pind - if Replace ut Paragraph Dictate QUESTION 2 Styles . Editing Voice (a) The coronavirus pandemic led to the enforced closure of some businesses (eg theatres and eat-in restaurants) and reduced demand for many businesses that remained open. This has led to falls in revenue and earnings and ultimately, cash flow problems for many companies. Because of this increased financial distress, we have seen many companies cut cash dividends as one strategy to conserve cash 0 Use signalling theory to discuss the likely market reaction to announcements related to these dividend cuts. (6 marks) (10 What alternative payout policy device might companies use to reduce the need for, or amount of dividend cuts and therefore conserve cash? (3 marks) (b) You must answer the following question for the company allocated to you in Assessment 2 "Business Case Studies 1" Type your answer underneath the information for your allocated company. Answering for a different company will result in a mark of Using the information below on your allocated company, qualitatively determine the level of payout you would expect, providing an explanation that applies relevant factors suggested by theory (11 marks) 100% O i e 00) ENG 3:12 PM 12/06/2020 Si ecam ACC00716 References Mailings Review View Help p Search Karamjit Man CM - A Aa- E.E.EE & T A.P.A. Share Comments 1 Normal No Spac Title Subtitle Subtle Em Emphasis Pind - if Replace ut Paragraph Dictate QUESTION 2 Styles . Editing Voice (a) The coronavirus pandemic led to the enforced closure of some businesses (eg theatres and eat-in restaurants) and reduced demand for many businesses that remained open. This has led to falls in revenue and earnings and ultimately, cash flow problems for many companies. Because of this increased financial distress, we have seen many companies cut cash dividends as one strategy to conserve cash 0 Use signalling theory to discuss the likely market reaction to announcements related to these dividend cuts. (6 marks) (10 What alternative payout policy device might companies use to reduce the need for, or amount of dividend cuts and therefore conserve cash? (3 marks) (b) You must answer the following question for the company allocated to you in Assessment 2 "Business Case Studies 1" Type your answer underneath the information for your allocated company. Answering for a different company will result in a mark of Using the information below on your allocated company, qualitatively determine the level of payout you would expect, providing an explanation that applies relevant factors suggested by theory (11 marks) 100% O i e 00) ENG 3:12 PM 12/06/2020
