Mr. Shyam S. Bhartia, Chairman of Jubilant Foodworks is in dilemma as he has to announce dividend policy in the coming week. Earlier company has distributed the reasonably consistent dividends. Mr. Bhartia is in confusion that whether he should announce bonus to shareholders or pay the dividends so as to maintain the consistency or to utilize the funds for buyback. Mr. Bhartia has appointed you to advice the advantages and the cost associated with different available options. Which strategy will you suggest to Mr. Bhartia?

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Mr Bhartia of Jubilant Food works is to announce the dividend policy in the coming week and is in a dilemma with three options Announce Bonus to share... View the full answer