USLIUI 5 10 points Save Answer (Your results should be at least up to 4 decimal places) Question 5 a. Does following the residual theory of dividends lead to a stable dividend? Contrast the basic arguments about dividend policy advanced by Miller and Modigliani and by Gordon and Lintner. (2+4=6 marks) (2 marks) b. Explain briefly how the imputation system of dividend payment removes the double taxation of dividends. c. Suppose a company pays out fully franked dividends of $120 each to investors with marginal tax rates of 35%. The statutory company tax rate is 30%. Calculate the net tax payable or the refund as the case may be. (2 marks) For the toolbar, press ALT+F 10 (PC) or ALT+FN+F10 (Mac). v IK U Paragraph Open Sans,sa... 10pt