TELUS Corporation was discussing its dividend policy, with Vice President Robert Gardner providing his views to CFO Robert McFarlane, who planned to make a recommendation to the board. TELUS and other large incumbent local exchange carriers dominated the Canadian telecommunications industry, which generated $29.9 billion in revenue in 2000. When considering its earnings, TELUS has four options - reinvestment, acquisition, reducing debt or increasing cash, and repurchasing shares or paying dividends to shareholders.

1. TELUS CORPORATION Dividend policy
Summary
Robert Gardner is a vice-president and treasurer of TELUS Corporation. Robert MCFarlance is chief
financial officer who wanted to know the Gardners current thinking about TELUS dividend policy.
McFarlance planned to make a dividend policy recommendation at upcoming meeting of TELUS Board.
Canadian telecommunication industry
Canadian telecommunication industry recorded 29.9 billion revenue in 2000. The industry was also
dominated by incumbent local exchange carriers (ILECs).The ILECs consisted primarily of very large
companies such as TELUS, Bell Canada, Aliant telecom etc. the large IELCs accounted for
TELUS Dividend policy
Firm has four choices regards to its earnings:
Reinvestment
Acquisition (growth)
Reduce debt/ increase cash
Repurchase its shares/ pay a dividend to shareholders