1. Why might a firm's investors wish to delay receiving cash from the firm? (LG17-1)

5. We talked about how a firm might attract a different clientele by switching dividend payout policies. Might a particular clientele change its preference for dividends versus capital gains through no action of the firm? Explain. (LG17-3

8. Suppose a firm announces a new dividend amount every year with the first quarterly dividend declaration, but never explicitly states that the divi- dend will be continued for the other three quarters of the year. However, in the past the firm has always continued the first quarter's dividend into the other three quarters of the year. How much would you expect this firm's share price to react when it announced the new, first-quarter dividend at the beginning of a new year? (LG17-4)

17-5 Dividend per Share Suppose a firm has a retention ratio of 40 percent, net income of $17 million, and 10 million shares outstanding. What would be the dividend per share paid out on the firm's stock? (LG17-2)

17-11 EffectsofDividendsonStockPricesGenCorp.isexpectedtopayadivi- dend of $3.50 per year indefinitely. If the appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex-dividend 35 days before dividend payment date, what will be the expected minimum and maximum prices in light of the dividend payment logistics? (LG17-5)

17-15 Dividends Set Annually Suppose that a firm always announces a yearly dividend at the end of the first quarter of the year, but then pays the dividend out as four equal quarterly payments. If the next such "annual" dividend has been announced as $4, it is exactly one quar- ter until the first quarterly dividend from that $4, the effective annual required rate of return on the company's stock is 13 percent, and all future "annual" dividends are expected to grow at 3 percent per year indefinitely, how much will this stock be worth? (LG17-4)