1. What are the advantages and disadvantages of using the payback method of evaluating projects?. 2. Is there a cost associated with retained

1.      What are the advantages and disadvantages of using the payback method of evaluating projects?.    

2. Is there a cost associated with retained earnings? Why?

3.      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?

4.  What do dividend increases signal? What do dividend decreases signal?

5.  Do all investors want dividends? If not, why not?

6.  Are dividends stable or constantly changing? Are dividends a fixed percentage of earnings?

7.  Can you identify which project a company should select from their NPVs? IRRs?