Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is an action company co-managers should seriously consider in trying to improve the company's credit rating? (The financial meausre used in

image text in transcribed
Which of the following is an action company co-managers should seriously consider in trying to improve the company's credit rating? (The financial meausre used in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.) o Increasing the size of the company's dividend payments to stockholdersthis helps reduce the amount of retained earnings on the company's balance sheet (which in turn helps increase the company's interest coverage ratio) O Placing increased attention on improving operating profits and operating profit margins in all four geographic regions -the resulting growth in operating profits companywide will increase the company's interest coverage ratio Using a portion on the company's internal cash flows and new issues of common stock to pay higher dividends to shareholders ONot increasing the compensation paid to PAT members (until the desired credit rating is achieved)-this will help keep production costs for both cameras and drones from rising O withdrawing all funds ronn the company's retained earnings account on the balance sheet and using the cash to pay off bank loans

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

Students also viewed these Finance questions