Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following are effective ways for managers to try to boost a company's stock price? Raising the company's dividend each year by $.25

image text in transcribed
image text in transcribed
Which of the following are effective ways for managers to try to boost a company's stock price? Raising the company's dividend each year by $.25 per share on more, repurchasing shares of common stock, and striving to achieve a high percentage of the five investor-expected performance targets (particularly the EPS target) over the years a management team is in charge of company operations Increase the company's dividend payments to shareholders each year, keep the company's credit rating at A (or above) strive to increase the company's retained earnings each year by a minimum of 25%, and not issue more than 2,000 shares of common stock in any one year Cut the dividend to zero, issue additional shares of stock as may be needed to avoid the use of bank loans maintain a default risk ratio of 4.0 or higher and strive to achieve a high percentage of the five investor-expected performance targets (particularly the EPS target) over the years a management team is in charge of company operations Make every effort to achieve a branded market share in each geographic region that is at least equal to the industry average, keep the company's dividend payout ratio in the range of 50%, maintain an interest coverage ratio of at least 2.0, and repurchase shares of common stock Spend amounts on corporate citizenship and social responsibility that are above the industry average, maintain a 25% dividend payout ratio, and issue additional shares of common stock to fund capital requirements and any negative year-end cash balances 201 Privao Which one of the following options is usually an appealing way to try to increase a company's ROE? Pursuing actions to increase the company's retained earnings Pursuing whatever financial actions it takes to keep the company's debt-to-assets ratio below 0.30 o Pursuing actions to boost the company's net profits by healthy amounts every year and, further, to maintain a high dividend payout ratio (so as to avoid increasing retained earnings by more than very modest amounts) Pursuing actions to boost the company's total profits, avoiding the payment of dividends, and using all available cash to pay off bank loans and avoid taking out any further bank loans Not paying a dividend so as to conserve cash for use in paying down the company's bank loans as fast as possible once existing loans are paid off, dividends can then be increased as much as $0.25 annually

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

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions

Question

What is the background of the situation?

Answered: 1 week ago