As the company Treasurer, the Board of Directors has asked you to comment upon a proposal to initiate dividend payments to the company’s common…

  •  As the company Treasurer, the Board of Directors has asked you to comment upon a proposal to initiate dividend payments to the company’s common shareholders. The Board wants you to address: What signals does the initiation and continuance of the dividend payments make to the market?
  • How will dividend payments affect the future growth of the company?
  • Would a stock repurchase (the company buys back its own shares) be a preferable alternative to cash dividend payments?