Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected increases in the company's stock price

If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected increases in the company's stock price in upcoming years, then it should pursue actions to

a.increase the annual dividend payments to shareholders most every year.

b.increase the amount of earnings retained in the business every year, thereby accumulating an ever larger amount of cash in the company's retained earnings account on its Balance Sheet.

c.outspend rivals on corporate social responsibility initiatives and charitable contributions, so as to encourage bigger numbers of investors who strongly support corporate social responsibility initiatives to purchase shares of the company's common stock.

d.increase the company's current ratio and thereby provide a very big boost to quickly achieving an A+ credit rating.

e.issue shares of common stock most every year and then using the cash to pay off bank loans and to pay for capital expenditures.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Illiterate Executive An Executives Handbook For Mastering Financial Acumen

Authors: Blair Cook

1st Edition

1460289935, 978-1460289938

More Books

Students also viewed these Finance questions