What is the best way to manage Austal Capital?

On the back of a good performance in FY15 and reduction in its debt level Austal has decided to start paying dividends to the investors. Going into FY16 and beyond what do you think is the best way for Austal to spend their cash?
I see Austal having three options, first continue with its current dividend policy and return some of the cash back to the investors. This seems to be a good idea, but results in Austal parting with its cash and needing to raise more money in future if good acquisition target pops out and they would like to pursue it. Second, acquire a competitor or a business that would result in good synergies. However, as with any merger there is an issue with integrating business as well as ensuring that new company would have enough orders and future opportunities to vindicate the acquisition. Thirdly, to initiate share repurchase (buybacks) and invest cash back into the business both increasing company valuation and helping company raise more cash in future. Given current under-pricing of the stock and low interest on Austal Go Zone bonds (effective interest rate in FY15 was 2.8% see Note 11 in FY15 annual report on page 60) this seems to be a better option. Having such low effective interest rate it does not make sense to repay their bond so quickly and coupled with fundamentally under-priced stock it would make more sense to start share buybacks now.

Please good people of HotCopper who hold Austal stock let me know which of the above options you would prefer and if so why not the others. If you have another idea please do let us know.

Cheers,
Ed