DIVIDEND POLICY...Businesses normally make distributions to shareholders by paying cash dividends. Listed below are four...
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DIVIDEND POLICY...Businesses normally make distributions to shareholders by paying cash dividends. Listed below are four companies who all have different approaches to how distributions are made.
Company Alpha Repurchase shares from shareholders as an alternative to a dividend payment.
Company Beta has yet to pay any cash dividends to shareholders and has no plans to make dividend payments in the foreseeable future.
Company Gamma offers shareholders a stable cash dividend each year.
Company Delta pays all profits available for distribution to shareholders in the form of a cash dividend each year.
What dividend policy represents the 4 company? outline the advantages and disadvantages of each approach?
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