Question
Which Of The Following Is NOT An Action Company Co-Managers Can Take To Help Meet Or Beat The Investor-Expected ROE targets in the upcoming years?
Which Of The Following Is NOT An Action Company Co-Managers Can Take To Help Meet Or Beat The Investor-Expected ROE targets in the upcoming years?
A. Putting increased attention on increasing operation profits in all 4 geographic regions
B. Being cautious about issuing new shares of common stock to raise capital for use in the company's camera/drone business
C. Making it standard practice to use a combination of internal cash flows from operations and new borrowing from the global community bank to finance the company's growth and new capital to investments in assembling action cameras and UAV drones; using new stock issues to finance the company's growth and capital expenditures should be done very sparingly. (usually only when company rating is B or below)
D. On occasion borrowing money from the global community bank (preferably in the form of 1-year loan that can be fully or most repaid the following year) and using the proceeds to repurchase outstanding shares of common stock; such action makes considerable financial sense when the company's stock price is expected to rise substantially in future years and/or when the company's stock price happens to temporarily "depressed" because of weak company performance in the prior year.
E. Making it a regular practice to pay an annual dividend to shareholders that is lower every year, perhaps even reaching levels approaching 30 - 50% less than in years 11- this is because retaining a progressively larger fraction of net earnings for use in the business makes it easier to achieve the higher ROE targets that investors expect.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started