Different Dividend Policies: read each of the scenarios and describe the most appropriate action to take in each of the scenarios.

-Crandle Inc. has issued a large number of stock options to its senior executives which are expected to cause significant earnings per share dilution in the next annual report.

-Ramone Consolidated has a large cash reserve that is being invested in short-term debt securities until the company can complete a number of acquisitions in the coming year. It hopes to expand into a new industry to diversify its sales.

-Simpson Ltd. is considering implementing its first regular cash dividend but finds that investment opportunities in its industry are erratic.

-Cadence Co. feels its shares are undervalued and it wants to communicate this to its investors.

-Edson Inc. plans to increase its debt ratio to the optimal level by repurchasing a large block of its shares at the best price possible.