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The owner of fast-growing Jackson Lumber has called you in to provide financial consulting services. The owner complains that he never seems to have enough

The owner of fast-growing Jackson Lumber has called you in to provide financial consulting services. The owner complains that he never seems to have enough cash on hand to fund his business. During your research, you find that the company is exceeding its sustainable growth rate. Which of the following actions would you recommend to improve the cash position of the company?

  • A. Take on more debt.
  • B. Reduce the sale of products that are not producing sufficient profit margins.
  • C. Consider price increases to existing products.
  • D. Increase the dividend that is paid to shareholders.
  • E. A, B, and C above.

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