Instructions to candidates:
Answer all questions below
Full analysis required using a company you have researched.
Students must show evidence of research to gain full marks.
Time new Roman Font 12, use paragraphs and check spelling and punctuation
Table of Contents, introduction and conclusion
You must table your referencing
Word Count 3200 (+ or – 10%)
An examination is intended to enable a learner to demonstrate their attainment of specified learning outcomes. Marks will be awarded based upon the extent to which they meet or exceed the intended learning outcomes, in accordance with QQI Assessment and Standards, revised 2013.
In marking this examination, examiners will assess LO3 which will assess the learner’s ability to:
· Analyse the stakeholder’s interest in a firm and specifically in relation to dividends and the whole concept around the implication of issuing dividends to both the company and the shareholder.
a) Discuss in your opinion the impact of Google not paying a dividend for many years after it went public on the overall share price. Include in your discussion your understanding of dividend irrelevance theory.
b) Analyse the main factors/considerations a financial manager needs to consider when deciding on a dividend policy. Compare in detail the impact of each factor on both the shareholder and the company.
c) Research a company and discuss what you believe to be their dividend policy and provide your opinion on the benefit or disadvantage to the shareholder of the policy. Discuss some points on the industry they are operating in and what their competitors’ policies are compared to the company you have researched.
d) Discuss your understanding of efficient market hypostasis and provide real life examples of each form that backs up your analysis.
Ø Review of google dividend policy and dividend irrelevance theory 10 Marks
Ø Analysis of the factors/ considerations 25 Marks
Ø Impact on company v shareholder of the dividend policy 15 Marks
Ø Research a company’s dividend policy and state what their policy is 25 Marks
Ø Layout and Presentation and Referencing 10 Marks
Ø Efficient market hypothesis 15 Marks
Total 100 Marks