Problem:
Dividend Policy: For each of the following 4 groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.
1.) High risk companies
2.) Companies that have recently experienced a temporary decline in profits.
3.) Companies that expect to experience a decline in profits.
4.) "Growth" companies with valuable future investment opportunities.