Describe the clientele effect in demand for dividend paying stocks. What sort of investors should wish to hold dividend paying stocks and which should not? Why? Describe Modigliani & Miller's irrelevance Propositionon dividend policy. Provide a plausible argument to explain why this proposition should hold. Explain the possible advantages and disadvantages of paying out funds through dividends or share repurchase. Describe the evolution of payout policy through dividends and share repurchase over the last 3 years (since 1982). What are the causes of these general changes in policy.