WBS Company is a well$-$established FTSE$100$ firm with a history of paying consistent dividends to its shareholders. The management team is contemplating changing the company's dividend policy and is considering three options: maintaining the current dividend payout, increasing the dividend payout significantly, or discontinuing dividends altogether.

a$)$ One of ABC Corporation's major competitors recently decided to discontinue dividends and instead focus on reinvesting in growth opportunities. Analyse the potential advantages and disadvantages of such a decision for WBS Company. How might the market's perception of the company change if it follows a similar path?

b$)$ WBS Company operates in a highly cyclical industry, where cash flows can vary significantly from year to year. How should the company's dividend policy account for these fluctuations? What signalling effect might different dividend policies have on investors in such an industry?

c$)$ Research a real$-$world example of a company changing its dividend policy. What effect did this have on the company$$s performance?