The shares of a company in a high technology industry have been listed on a...

The shares of a company in a high technology industry have been listed on a stock exchange for 10 years. During this period, it has paid no dividends but invested all retained earnings in growth. The company is now entering a period of relatively stable growth and the directors are considering beginning to pay dividends They are reviewing the following suggestions made by members of the board:

• Pay cash dividends linked to growth in earnings

• Use a residual theory approach to establish cash dividends

• Issue scrip dividends (shares instead of cash)

• Continue to pay no dividends as dividends are irrelevant to the value of the company

Which THREE of the following are correct statements for the directors to take into consideration when making a decision about future dividend policy?