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Why might a firm begin paying stock dividends

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Reference no: EM133110008

You are a team of stock analysts. Assume you will be receiving the following news:

...The Philadelphia Federal Reserve Bank's factory index jumped to highest in more then two years in June.

"Manufacturing index is solid", said Jeffery Roach, the Chief Economist at Horizon Investment

...the building permits added 0,08 percentage point to an annual rate of 1.501 million in May. Consumer expectations added 0,05 percentage point....

Make a forecast about the development S&P 500 Index.

b) Why might a firm begin paying stock dividends in the growth stage?

Reference no: EM133110008

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