Preferable alternative to cash dividend payments

Assignment Help Financial Management

Reference no: EM131536251

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: EM131536251

Questions Cloud

What is the cost of debt and after tax : Calculate the Components of WACC and the WACC. What is the Cost of Debt? After Tax

While testing occurrence assertion all lending agreements : While testing the occurrence assertion all new lending agreements should ultimately be traced to the

Provide protection against the value of portfolio : What options should be purchased to provide protection against the value of the portfolio falling below 554 million in one year's time?

What is the total present value of your projected sales : Your company wants to finance a new maintenance vehicle. what is the total present value of your projected sales?

Preferable alternative to cash dividend payments : Would a stock repurchase (the company buys back its own shares) be a preferable alternative to cash dividend payments?

What is the most you would pay for this golf course : what is the most you would pay for this golf course?

Impact of synergies in whole firm dcf with synergy model : how might that have affected one’s ability to correctly measure the impact of synergies in the whole firm DCF with synergy model.

Well-diversified portfolio with standard deviation : What is the expected return on a well-diversified portfolio with a standard deviation of 8.1 percent?

Define the risk-free rate : What would the risk-free rate have to be for the two stocks to be correctly priced?

User Account

All Pages