Coming out of a recession when a companys common stock price has been reduced to 50% off its pre-recession market price, if a company is sitting on significant amounts of idle cash and looking forward to a brisk recovery over the coming 2-3 years, which of the following is likely to produce the best impact on stockholder value? (Learning objectives 9A, 9B, 9C)

Select one:

a. Investment into broad market indexes

b. Reduction of dividends to fund expansion

c. 2:1 stock split

d. Stock buyback