Question: Q#2 (15 marks) Version 2 @ 2012 Behavioral finance has recently come to prominence within the finance field in recent years. Discuss how behavioral finance

Q#2 (15 marks) Version 2 @ 2012 Behavioral finance has recently come to prominence within the finance field in recent years. Discuss how behavioral finance can explain some of the market anomalies and show how managerial biases can affect corporate decisions. Q#2 (15 marks) Version 2 @2013 The traditional theoretical framework of dividend policy is based on the famous irrelevance of dividend policy in a world of perfect capital markets with no taxes. List the main assumptions behind this theory and briefly describe how various market imperfections affect a firm's dividend policy

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