Question 1:

Please refer to the curved line in figure 14.8 on page 486 in the textbook the reason for the following: The line initially has an upward slope, but gradually begins to slope downward as you move further out along the horizontal axis.

Question 2:

Please explain the following statement: There are times when a cut in dividends can be a positive signal.

Question 3:

Consider the Dividend Irrelevance Theory and explain the following: Generally speaking, why is there an inverse relationship between dividends and the potential for growth?

Question 4:

Consider the Bird in the Hand Theory and explain the following: Why are dividends less risky than pursuing growth opportunities?

22 mins ago