Suppose that your bank had reported a substantial loss during the past year. You are meeting with

Question:

Suppose that your bank had reported a substantial loss during the past year. You are meeting with the bank’s board of directors to discuss whether the bank should make its traditional (25 years straight) payment to common stockholders. Provide several arguments for why the bank should authorize and make the payment. Then, provide several arguments for why it should not make the payment. What should decide the issue?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...