There has been controversy especially in a number of shareholders meeting regarding the payment and non-payment of dividends. In some companies the directors are recommending nonpayment of dividends while in others, the shareholder hold view that the recommended dividend is too low.

Required:

1. In line with the above statement explain any three factors to be considered by the directors in the design of dividend policy (3 Marks)

1. Should the shareholders be ones to decide how much divided to be paid? Explain your position. (4 Marks)

1. Does the payment of dividends influence the share price? Explain using examples (3 Marks)