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You have been recently been hired as Q & R Manufacturing's chief financial officer (CFO) by the firm's chief executive officer (CEO). The CEO tells
You have been recently been hired as Q & R Manufacturing's chief financial officer (CFO) by the firm's chief executive officer (CEO). The CEO tells you that in the past, a lack of financial planning has frequently caused the firm to have to rush out and get outside funding by either borrowing money (selling bonds) or selling stock. He wants to avoid this going forward and has asked you to develop a plan (beginning with this year's projected income statement) that will let him know ahead of time if external funds will need to be raised to carry out next year's plans and budget. Maximizing shareholder wealth is the prime objective of a firm's management team. Shareholder wealth, in turn, comes from stock appreciation, increased dividends, or both. What could cause a company's declared dividends to be raised, enhancing shareholder wealth? Provide 2 examples. In your posting, you must also specifically link things or actions that occur that could cause dividends to be increased. Also , include some comments that link dividend policy and the payout ratio to the increase in dividends
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