Question $1(30$ marks$)$

Briefly explain with not more than $60$ words $($and calculation, if any$)$ for each of the following parts that whether you agree or disagree with the statement.

a$)$ It is impossible for a firm to have a dividend payout ratio of $-3\%($i$.$e$.,$ negative $3\%).$

b$)$ Capital markets are markets for short$-$term funds such as T$-$bonds.

c$)$ The voting rights for the existing shareholders must decrease when the company issues new shares.

$(6$ marks$)$

d$)$ A shareholder may get a return rate of $5\%$ a year even if the share price of the common stock does not change over time.

$(6$ marks$)$

e$)$ Given Kitty has purchased $300$ shares issued by Jason Corporation at $$5$ each with a margin account, in which the initial margin is $60\%$ and the maintenance margin is $40\%.$ If Kitty borrowed maximally, it means that she borrowed $$600$ initially, and she will not receive a margin call if the share price is decreased by $$2.(6$ marks$)$