You are consulting with the board of directors for a small corporation called FunTime, Inc. FunTime, Inc. sells party and entertaining items. The board is looking at ways to make the stock more attractive to investors. FunTime wants to grow and expand the company. There are a few main ways a company can affect the value of its stock. FunTime, Inc. board of directors could declare a cash dividend. Cash dividends require giving cash on hand to shareholders. The company could also keep the cash for expansion projects. The board could declare and issue a stock dividend which puts more shares in the hands of shareholders effectively lowering the value of each share. This is done to encourage wider ownership and satisfy stockholders who want a dividend when the corporation needs to conserve the company's cash. A third way is to repurchase shares on the market. This is done to increase the share value-- fewer shares on the market means an increase in value of each share or an increase in earnings per share (EPS). Some investors make investing decisions based on EPS. There are other reasons to repurchase shares, but affecting the share price is a common reason. Investors tend to see the buyback as a signal that earnings per share will increase thereby increasing share value on the market. The repurchase is sometimes used to award employees with bonus shares of stock. Another way to affect the value of the stock is to report transparent, high-quality earnings. This growth will be over the longer term and will be reflected in an increased stock value/price over time.

First Post Based on your current knowledge, present your recommendation to FunTime Inc. board of directors on how they could make their stock more attractive to investors. Support your recommendation and explain how it would be disclosed to investors?