Should the company revise its current dividend policy

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Discussion

A telecommunications company with a market value of $300 million with 0.1 million shares outstanding is considering its present dividend policy. Historically the company has paid $1.5 in yearly dividends per share. The telecommunications market is considered to be mature, and the company beta= 1.3. Historically the company has made profits in the range $-20 million to $25 million per year the last decade. The company has needs for making large investments in emerging markets. Should the company revise its current dividend policy?

Reference no: EM131407355

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