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You are the CFO of a relatively young public company that was established 5 years ago. Your firm has not been paying any
Posted: Fri Jul 01, 2022 7:47 am
by answerhappygod
- You Are The Cfo Of A Relatively Young Public Company That Was Established 5 Years Ago Your Firm Has Not Been Paying Any 1 (43.54 KiB) Viewed 30 times
You are the CFO of a relatively young public
company that was established 5 years ago. Your firm has not been paying any dividends during this time and instead been using all internally generated funds for reinvestment and growth. You are preparing for a meeting with the CEO and the Board of Directors in which the main item on the agenda is about whether the
company should now start paying dividends or whether it should continue to reinvest the funds. You have a strong preference for the latter. That is to say, you do not believe that the
company should start paying dividends just yet. Write up a memo that outlines your position on this matter and contains your recommendation backed by appropriate justification. (15 points)