The following listed businesses each have different policies concerning distributions to shareholders:

l North plc pays all profits available for distribution to shareholders in the form of a cash dividend each year.

l South plc has yet to pay any cash dividends to shareholders and has no plans to make dividend payments in the foreseeable future.

l West plc repurchases shares from shareholders as an alternative to a dividend payment.

l East plc offers shareholders the choice of either a small but stable cash dividend or a scrip dividend each year.

Required:

Discuss the advantages and disadvantages of each of the above policies.