Please give an original answer.
Integrated WaveguideTechnologies (IWT) is a 6-year-old company founded by Hunt Jacksonand David Smithfield to exploit metamaterial plasmonic technologyto develop and manufacture miniature microwave frequencydirectional transmitters and receivers for use in mobile Internetand communications applications. IWTâs technology, although highlyadvanced, is relatively inexpensive to implement, and its patentedmanufacturing techniques require little capital as compared to manyelectronics fabrication ventures. Because of the low capitalrequirement, Jackson and Smithfield have been able to avoid issuingnew stock and thus own all of the shares. Because of the explosionin demand for its mobile Internet applications, IWT must now accessoutside equity capital to fund its growth, and Jackson andSmithfield have decided to take the company public. Until now,Jackson and Smithfield have paid themselves reasonable salaries butroutinely reinvested all after-tax earnings in the firm, sodividend policy has not been an issue. However, before talking withpotential outside investors, they must decide on a dividendpolicy.
Your new boss at theconsulting firm Flick and Associates, which has been retained tohelp IWT prepare for its public offering, has asked you to make apresentation to Jackson and Smithfield in which you review thetheory of dividend policy and discuss the following issues.
What is meant by the term âdistribution policyâ? How has the mixof dividend payouts and stock repurchases changed overtime?Minimum 150 words or more. Thank you.
Please give an original answer.
Integrated WaveguideTechnologies (IWT) is a 6-year-old company founded by Hunt Jacksonand David Smithfield to exploit metamaterial plasmonic technologyto develop and manufacture miniature microwave frequencydirectional transmitters and receivers for use in mobile Internetand communications applications. IWTâs technology, although highlyadvanced, is relatively inexpensive to implement, and its patentedmanufacturing techniques require little capital as compared to manyelectronics fabrication ventures. Because of the low capitalrequirement, Jackson and Smithfield have been able to avoid issuingnew stock and thus own all of the shares. Because of the explosionin demand for its mobile Internet applications, IWT must now accessoutside equity capital to fund its growth, and Jackson andSmithfield have decided to take the company public. Until now,Jackson and Smithfield have paid themselves reasonable salaries butroutinely reinvested all after-tax earnings in the firm, sodividend policy has not been an issue. However, before talking withpotential outside investors, they must decide on a dividendpolicy.
Your new boss at theconsulting firm Flick and Associates, which has been retained tohelp IWT prepare for its public offering, has asked you to make apresentation to Jackson and Smithfield in which you review thetheory of dividend policy and discuss the following issues.
What is meant by the term âdistribution policyâ? How has the mixof dividend payouts and stock repurchases changed overtime?Minimum 150 words or more. Thank you.