1 .		Which one of the following most accurately describes what is meant by dividend policy?
2 .		Which one of the following factors does not promote a stable, rather than fluctuating, dividend policy by firms?
3 .		Which of the following are true? The resolution of uncertainty argument on dividend policy is based on the premise that investors perceive more distant dividends as subject to more risk and therefore they prefer near-term dividends. The clientele effect is the concept that shareholders are attracted to firms that follow dividend policies consistent with their objectives. In a world with no external finance available, dividend policy should follow a residual approach. A scrip dividend gives shareholders the opportunity to receive additional shares in proportion to their existing holding, instead of the normal cash dividend.
4 .		Which of the following does not promote a stable dividend policy
5 .		The ‘dividends as residuals’ view of dividend policy is best described as:
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