Long-term to protect the organization from corporate raiders

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The corporation has been wildly successful, in this, the third year of operation. While operating in the social media advertising arena can be risky, the corporation has been able through strategic alliances and timely hires, to stay ahead of the profit curve. While the stock price continues to escalate since IPO, some shareholders grow weary of no dividends. A dividend would allow the firm to finally be listed on the NYSE, opening more capital potential to the firm. As is true with any technology firm, there are corporate raiders lurking hoping that management slips, so the firm can be swallowed up. Few shares are owned by the management team- only 12% of all outstanding shares. Approximately 20% of the firms shares are in treasury, not because of an under-subscription, but because the firm purchased shares for the last two years in a buyback. As the CFO of the firm, management turns to your leadership on strategic financial issues. Specifically, 1) what should the firm do about dividend policy- be specific, and 2) what can the firm do long-term to protect the organization from corporate raiders?

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The said paper is about the corporate dividend policy and the steps to be be taken to evade corporate evaders. Here all the dividend policy of company is discussed and suggestion is given to select appropriate dividend policy as required. Secondly here the necessary steps to be taken in order to safeguard against the hostile takeover.

Reference no: EM131079435

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