With a view to maximising shareholders wealth, the directors of Galahad plc are currently trying to decide on the most appropriate dividend policy to adopt for the company's shareholders. However, there is strong disagreement between three of the directors concerning the benefits of cash dividends. Director A argues that cash dividends would be welcomed by the market and that a high payout ratio would reflect positively on the company's share price. Director BMP argues that whether a cash dividend is paid or not is irrelevant to shareholder wealth maximisation. Director C takes an opposite view to Director A and argues that dividend policy should be avoided as it would lead to a decrease in shareholder wealth. Required: a) Discuss the arguments for and against the position taken by each of the three directors. b) Assuming the board of directors decides to pay a dividend to shareholders, what factors should be considered when determining the level of dividend payment