Question: b) Cedar Ltd has just announced that they will start to pay a dividend after many years of not paying a dividend on their common

b) Cedar Ltd has just announced that they will start to

b) Cedar Ltd has just announced that they will start to pay a dividend after many years of not paying a dividend on their common stock. One financial journalist praised this as a good idea and the other criticised it. In the end the share price fell. Explain in a maximum of two sentences why the share price would fall. (3 marks)

help me with both.

Topic 8 Question 3 (10 Marks) For each of the following events, state the effect on each of the items listed below. Draw an up arrow(1) for an increase, a down arrow for a decrease (1) and a blank space or dot for no change. Share price of Market Market Value Value of of Firm's Firm's Debt Equity Number Market Value shares of the Firm's Assets A one for ten stock split. Issuing shares and keeping the cash raised in the bank. Paying a cash dividend. Accepting a positive NPV project funded using cash. Issuing debt and using the proceeds to buy back shares on-market. The company issues new bonds

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