If we hold the company's investment policy constant, then dividend policy is a trade-off between cash dividends

Question:

If we hold the company's investment policy constant, then policy is a trade-off between cash dividends and the issue or repurchase of common stock. Explain fully, stating any assumptions you might make.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...