Problem:

While Rogue Corporation has been in business for over 50 years, newly developed products pushed the firm's year-over-year growth rate to 35% during the latest three years. The firm is proud of its history of paying dividends, but the vigorous recent growth of the firm has left it cash challenged.

Required:

Which of the following policies/procedures would you consider best under the circumstances?

Select one:

a. Enter into a long-term stock repurchase program.

b. Look seriously for a merger partner.

c. Substitute a stock dividend for the current cash dividend.

d. Borrow long-term to pay the current dividend.