In marking this examination, examiners will assess LO3 which will assess the learners ability to: Analyse the stakeholders interest in a firm and specifically in relation to dividends and the whole concept around the implication of issuingdividends to both the company and the shareholder. Requirementa) Discuss in your opinion the impact of Amazon 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) Covid 19 has impacted many companies market value. Discuss how previous dividend policies could have impacted their current position as a result of the economic impact of Covid 19. d) 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 theircompetitors policies are compared to the company you have researched. Review of Amazons dividend policy and dividend irrelevance theory 10 Marks Analysis of the factors/ considerations 25 Marks Impact on company v shareholder of the dividend policy 15 Marks Research a companys dividend policy and state what their policy is 25 Marks Layout and Presentation and Referencing 10 Marks Covid 19- Past dividend policy implications 15 MarksTotal 100 Marks
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