Below is given a discussion. Please reply to the following discussion below. Your reply should include whether you agree or diagree, why? what are your reasons behind agreeing or disagreeing? Whether the facts selected are wrong or right. Please answer in atleast 150 to 200 words.

question: From the scenario, examine the dividend rate that TFC is paying in order to determine if the company should receive a rate adjustment. Suggest whether TFCs dividends should either (1) stay the same; (2) be increased; (3) or go down. Provide a rationale for your response.

discussion: TFC is paying a $10.00 per share dividend rate annually. When TFC is considering the amount and frequency of the payout for dividends they must consider what they will need for future earnings growth, as that is what should be left after they determine the fair and correct amount for a dividend and frequency of a payout. High growth firms early in their life usually have a very low or zero payout ratio. As they mature, usually you will they will tend to return more of the earnings back to its investors.

The average rate was 74.20% and in the 1990s it remained somewhere around 23.2%, a fraction of what dividends used to be. They should remain at $10.00 per share per year. I feel like if they can afford this in the midst of their expansion, they can almost promise on the back end of the expansion a higher and maybe more frequent dividend payout to their investors. I think the investors will appreciate keeping the payout where it is considering the companys growth.