(a) It is said that financial management is concerned with investment decisions, dividend decisions and financing decisions. Critically discuss why financial management theory has claimed that only investment decisions have any importance, and that decisions about financing and dividends depend upon a firm's optimal investment schedule.
(b) In the context of dividend policy, discuss the meaning of the following terms:
(i) Asymmetric information;
(ii) Scrip dividends;
(iii) Shareholder perks.
(c) Discuss whether a policy of paying out no dividends means that a company has no value.