1. (73 points total) It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. (a) (46 points - 31 pts discussion and 15 pts graph). Discuss the "homemade dividends" concept, in particular how investors can change the intertemporal distribution of dividends based on their own time preferences. Illustrate the latter with a graph. Graph: 15 pts (draw graph by hand, scan, photo, or snip the drawn graph, paste the image into your solutions) (27 points) Discuss at least five "real-world factors that may cause one dividend policy to be preferable to another from the perspective of the incentives and proferences for both individual investor and the corporation. 1. (73 points total) It has been shown that in the absence of taxes and other market imperfections firm value will be unaffected by dividend policy. (a) (46 points - 31 pts discussion and 15 pts graph). Discuss the "homemade dividends" concept, in particular how investors can change the intertemporal distribution of dividends based on their own time preferences. Illustrate the latter with a graph. Graph: 15 pts (draw graph by hand, scan, photo, or snip the drawn graph, paste the image into your solutions) (27 points) Discuss at least five "real-world factors that may cause one dividend policy to be preferable to another from the perspective of the incentives and proferences for both individual investor and the corporation