How will dividend payments affect the future growth

Reference no: EM131959290

Question: As the company Treasurer, the Board of Directors has asked you to comment upon a proposal to initiate dividend payments to the company's common shareholders. The Board wants you to address: What signals does the initiation and continuance of the dividend payments make to the market? How will dividend payments affect the future growth of the company? Would a stock repurchase (the company buys back its own shares) be a preferable alternative to cash dividend payments?

Reference no: EM131959290

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