explain the relationship between a firm rsquo s optimal dividend policy and the firm 555795

Dividend Policy
a. Explain the relationship between a firm’s optimal dividend policy and the firm stock price.
b. Describe the dividend irrelevance theory, the “bird in the hand” theory, and the tax preference theory and explain the dividend irrelevance theory in the context of the determinants of the value of the company, and discuss the principal conclusion for dividend policy of the dividend irrelevance theory and describe how any shareholder can construct his or her own dividend policy.
c. Calculate, assuming a constant return on equity, a company’s implied dividend growth rate, given the company’s dividend payout rate.
d. Describe how managers signal their company’s earnings forecast through changes in dividend policy describe the clientele effect.
e. Describe the residual dividend model and discuss the model’s possible advantages or disadvantages to the company.
f. Describe dividend payment procedures, including the declaration, holder of record,ex dividend, and payment dates.
g. Describe stock dividends and stock splits, and explain their likely pricing effects and discuss the advantages and disadvantages of stock repurchases, and calculate and interpret the price effect of a stock repurchase.