In your discussions with the CFO you have talked about the impact of a dividend on your companys market price and financial statements. He has asked that you and your team evaluate the impact of issuing a dividend. Use the income statement and balance sheet provided to make recommendation for the amount of dividend (if any). How are retained earnings impacted and what does this mean for the organization? Compute the Internal Growth Rate and Sustainable Growth Rate using current (2015) financial information and then if we issue a dividend payment of $3 million ($0.20 per share times 15 million shares). Explain your thought process and rationale for a recommended dividend strategy. Concept Check: Dividends are distributions of profits to your investors who placed their capital at risk for you. Theoretically every company should eventually provide a dividend distribution to their investors. Helpful Hint: Dividends are voted on every quarter by the Board of Directors for a company; the amount of the dividend or if any is paid can be decided at that time.