QUESTION 1 (25 MARKS) a. A dividend is the distribution of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividend- paying companies are typically eligible as long as they own the stock before the ex- dividend date. Dividend as an attraction for company to retain existing shareholders and attract new investors to invest in company's shares. Dividends may be paid out as cash or in the form of additional stock. From the above statement, distinguish the pro and cons of paying the dividend. (8 marks) b. Justify the scenarios where the conflicts between stockholders and debtholders can be exists (9 marks) c. What is the callable bond? (2 marks) d. Briefly explain types of call features. (6 marks)