Question 4.

Which one of the following options is usually an appealing way to try to increase a company's ROE?

a. Pursuing actions to boost the company's total profits and maintaining a high (above 75%) dividend payout ratio

b. Paying a minimal dividend (probably no more than $0.10 per share, so as to keep boosting retained earnings by a sizable amount every year

c. Not paying a dividend and using all available cash to pay down debt

d. Issuing additional shares of stock and using the proceeds to retire long-term debt and avoid short-term loans

e. Paying a dividend each upcoming decision round that exceeds projected EPS by $1.00

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Question 5.

Which one of the following has a direct negative impact on a company's image rating?

a. Failure to spend at least $1,000 per worker on best practices training at each of the company's production facilities.

b. Failure to achieve the investor-expected gains in the company's stock price

c. Losing all bids to sign celebrities to contracts to endorse the company's brand of athletic footwear in a given year

d. Decreases in the company's global average S/Q rating for branded footwear

e. A credit rating that is below investor expectations.