Week 5 Discussion Questions Week 5 Chapter 12 1. Explain why the following statements is true: "All else the same, firms with relatively stable sales are able to carry relatively high debt/assets ratios. Week 5 Chapter 13 1. Give arguments to support both the relevance and the irrelevance of paying dividends. 2. Most firms would like to have their stock selling a high price/earnings (P/E) ratio, and they would like to have a large number of different shareholders. Explain how stock dividends or stock splits might help achieve these goals. 3. Would it ever be rational for a firm to borrow money to pay dividends? Explain. Please read and review the discussion questions from chapters 12 & 13. Please post a response to each question Besley, Scott, and Eugene F. Brigham. CFIN. 6th ed., South Western, 2019