While Rogue Corporation Has Been in Business for Over 50

question 113

Multiple Choice

While Rogue Corporation 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) Borrow long-term to pay the current dividend.
• B) Look seriously for a merger partner.
• C) Enter into a long-term stock repurchase program.
• D) Substitute a stock dividend for the current cash dividend.