The Senior Management Team of ABC, an owner-managed, capital intensive start-up engineering business, is considering...

The Senior Management Team of ABC, an owner-managed, capital intensive start-up engineering business, is considering the options for its dividend policy. It has so far been a successful business and is expanding quickly Once in place, the Senior Management Team anticipates that its current investment plans will yield returns for many years to come The first agenda item at every meeting currently concerns arranging and funding new equipment and premises.

Which of the following dividend policies is likely to be the most suitable?