Would you prefer that we pay you dividends or reinvest

Assignment Help Financial Management

Reference no: EM131616005

Please read the following and breifly answer the questions that follows.

You are an elderly widow(er) and the new CEO of one of the firms in which you own stock has contacted you because she wants to connect directly with shareholders. The CEO, Dr. Stephanie Yates, has asked you the following questions. Please draft a letter of 1-3 paragraphs to respond to her questions. Be sure that each paragraph has at least three sentences!

1) Would you prefer that we pay you dividends or reinvest our profits so that the value of your stock increases over time resulting in capital gains for you? Please explain your answer.

2) Do you like it when our directors formally announce our future dividend policy? Why or why not?

Reference no: EM131616005

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