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Infrared Geological Technologies (IGT) has been using the residual dividend policy in the past to...

Infrared Geological Technologies (IGT) has been using the residual dividend policy in the past to determine its per share dividend. The firm’s management has decided that it will now change this dividend policy. The new policy will be a much lower dividend per share than last year of only $1.00. However, if the firm has considerable excess cash, the firm will consider paying a one-time extraordinary dividend or repurchasing stock.

You have been retained by the firm to write the press release for this change in dividend policy.

Compose a half-page press release.

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Answer #1

Answer:

The press release content for the change in dividend policy is as below

Press Release

Company: Infrared Geological Technologies

Topic: Change in Dividend Policy

Whom so ever it may concern

This is to inform that Infrared Geological Technologies (IGT) Company had decided to make the changes in the dividend policy. Thus they are releasing a revised dividend policy for all their concern stakeholders. The revised dividend policy is available at their website. This can be viewed and referred at IGT’s official website by the applicable users. These changes will be effective from the date XX/YY/2019. The dividend will be allocated and credited to all concern as per the new policy with effect from the above mentioned date. The dividend applicable prior to this date will be carried out as per old dividend policy. Issues and concern are requested to report at the official website and will be responded back by the IGT team. A set of FAQ are released at the website. People can visit to the website for FAQs.

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