Part (b) required candidates to evaluate the dividend policies of possible equity investments with a view to choosing between them for treasury management purposes. Most of the candidates managed to provide a limited evaluation the dividend policies of the three companies but found it more difficult to expand on these and draw reasonable conclusions.

A sizeable number of candidates were confused between stable dividends (Theta) and stable dividend policies (Omega and Kappa), and thereby demonstrating a lack of sufficient knowledge and understanding.