Dividend Assignment 1) IDENTIFY THE THEORY BEHIND THE DIVIDEND POLICY BEING USED BY EACH OF THE FOLLOWING FIRMS. AND BRIEFLY EXPLAIN YOUR ANSWERS. (ONE OR 2 SENTENCES PER FIRM.) Firm A is a successful manufacturer of high-tech equipment. Despite having had sizable, growing profits for the past several years, it has been careful to maintain a policy of only small, steady increases in dividends, far below what it could afford to pay. Last week, however, it received word that a judge had rejected a competitor's appeal in an obscure legal case involving a critical patent Firm A holds. The ruling means Firm A is now the clear owner of the patent for a very successful product. Firm A decides to double its dividend. What dividend theory is it following