Only bid if you can meet budget- Finance

  250 Words with one reference in APA format including in-text citation.

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?