With the economy in expansion, profits at Canada’s large corporations are high, and cash flowing in is at record levels. Management must decide what to do with the growing pool of cash. Should the cash be plowed back into the business? Should it be used to buy back shares? Should it be used to pay down the company’s debt?

Required:

Your team should discuss the advantages and disadvantages (risks) of each of the alternatives discussed above. All team members should agree with and understand the answer and be prepared to report to the class. (Each teammate can assume responsibility for a different part of the presentation.)