Question
After reviewing its prospects for the coming year, a company determines that it has no potential projects for the upcoming year that would exceed its
After reviewing its prospects for the coming year, a company determines that it has no potential projects for the upcoming year that would exceed its hurdle rate. What should the company do with its profits from the current year?
Group of answer choices
Liquidate the company and distribute all of the profits and assets to its investors.
Distribute the majority of the profits to its investors as a dividend.
Retain the profits as savings for profitable projects in upcoming years.
Invest the profits in the projects anyway and hope that these new product lines exceed expectations.
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