1. Is there a cost associated with retained earnings? Why?
2. When will a firm announce a share repurchase? What does it signal to the market? What happens to the firm's stock price following a repurchase?
3. What do dividend increases signal? What do dividend decreases signal?
4. WHY Do NOT all investors want dividends? If not, why not?
5. Are dividends stable or constantly changing? Are dividends a fixed percentage of earnings?
6. Can you identify which project a company should select from their NPVs? IRRs?