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i) The decision about how much earnings to retain and how much to return to ordinary shareholders as a dividend is a key financial management decision: Discuss some of the factors that should be considered by the senior managers of a listed company in making a decision on the size of the annual dividend to pay to its shareholders. (15 marks) ii) Give a detailed explanation of how interest rate risk can be hedged using options or swaps. What are the advantages and disadvantages of the hedging method you have chosen? (10 marks)