As the company Treasurer, the Board of Directors has asked you to comment upon a proposal to

Question:

As the company Treasurer, the Board of Directors has asked you to comment upon a proposal to initiate payments to the company's common shareholders. The Board wants you to address: What signals does the initiation and continuance of the payments make to the market? How will 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 payments?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...