Question: (8.4. A) What are the challenges faced by the managers of successful companies while formulating payout policy? What dividend irrelevanee theory, bird-in-the-hand fallacy, and tax

(8.4. A) What are the challenges faced by the managers of

(8.4. A) What are the challenges faced by the managers of successful companies while formulating payout policy? What dividend irrelevanee theory, bird-in-the-hand fallacy, and tax preference theory suggest about the impact of payout policy on cost of equity and stock price? Use necessary calculations and graphs to explain the theorems. B) How corporate taxes affect debt-equity choice? Marks: 10+5=15

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