Problem1. The Directors of Le Havre Plc are discussing the importance of the dividend policy on the market value of their firm. The Chairman considers that the dividend is important and does affect the company?s market value. On the other hand the Finance Director disagrees, saying that the dividend policy has no impact on the company?s market value.
problem1. Prepare a report that fully describes both Directors? views. Include relevant empirical research to support both views.