90) While Captive, Inc. has been in business for over 50 years, newly developed

Question

90) While Captive, Inc. has been in business for over 50 years, newly developed
products pushed the firm’s year-over-year growth rate to 35% during the latest
three years. The firm is proud of its history of paying dividends, but the
vigorous recent growth of the firm has left it cash challenged. Which of the
following policies/procedures would you consider best under the circumstances?
a. Substitute a stock dividend for the current cash dividend.
b. Borrow long-term to pay the current dividend.
c. Enter into a long-term stock repurchase program.
d. Look seriously for a merger partner.

Explanation / Answer

90) a. Substitute a stock dividend for the current cash dividend.

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.