QUESTION Often Plc is a company that is still managed by the two individuals who set it up 12 years ago. In the current year, the company acquired Plc status. Previously, all of the shares had been owned by its two founders and certain employees. Now 40% of the shares are in the hands of the investing public. The company's profit growth and dividend policy are set out below. Year Profit Shares in Issue (K'000) 176 200 240 20 xl 20 x 2 20 x3 20 x 4 20 x 5 (current) 290 444 Dividend (K'000) 88 104 120 150 222 (proposed) 800 000 800 000. 1 000 000 1 000 000 1 500 000 Required (i) Give an analysis of the current Dividend Policy and Evaluate whether a continuation of the same dividend policy would be suitable given that the company is now listed on the stock exchange. (7 marks) (ii) Discuss the factors that should be taken into consideration when determining a firm's dividend policy. (3 Marks)

QUESTION Often Ple is a company that is still managed by the two individuals who set it up 12 years ago. In the current year, the company acquired Ple status. Previously, all of the shares had been owned by its two founders and certain employees. Now 40% of the shares are in the hands of the imvesting public. The company's profit growth and dividend policy are set out below. Required (i) Give an analysis of the current Dividend Policy and Evaluate whether a continuation of the same dividend policy would be suitable given that the company is now listed on the stock exchange, (7 marks) (ii) Discuss the factors that should be taken into consideration when determining a firm's dividend policy, (3 Marks) QUESTION Often Ple is a company that is still managed by the two individuals who set it up 12 years ago. In the current year, the company acquired Ple status. Previously, all of the shares had been owned by its two founders and certain employees. Now 40% of the shares are in the hands of the imvesting public. The company's profit growth and dividend policy are set out below. Required (i) Give an analysis of the current Dividend Policy and Evaluate whether a continuation of the same dividend policy would be suitable given that the company is now listed on the stock exchange, (7 marks) (ii) Discuss the factors that should be taken into consideration when determining a firm's dividend policy