Which of the following is NOT an action company co-managers can take to help mee

Question

Which of the following is NOT an action company co-managers can take to help meet or beat the investor-expected increases in the company's stock price in upcoming years? Increasing annual dividend payments to shareholders most every year Pursuing efforts to increase total operating profits in all four geographic regions -the resulting growth in operating profits wil improve total net profit and help raise the EPS, driving the company's stock price upward Increasing the amount of earnings retained in the business, thereby building a large amount of cash held in the company's retained earnings account on its Balance Sheet Using a portion of cash flows from operations to repurchase shares of common stock on a regular basis Building the company's earnings per share and return on equity; it is widely-known that these are important factors that drive the company's stock price

Explanation / Answer

Answers in the order of questions posted above

1. Increasing the amount of earnings retianed in the business, thereby building a large amount of cash held in the company's retained earnings account on its balance sheet 2. Paying camera/drone PAT members attractively high total annual compensation packages, thereby enabling them to enjoy a standard of livnig well above the Taiwan average 3. The capital cost of converting to robot-assisted drone assembly results in higher annual depreciation costs in producing/assembling drones.
Cashflow and Business decision shall be taken basis overall investment required and not on depreciation methodology. 4. Increasing total annual compensation per camera/drone PAT member by a minimum of 2% and a maximum of 5% annually.
Increasig salaries directly hits bottom line, and annual compensation has to be related to productivity and per industry standards. The range provided has to be verified with industry benchmarks. 5. all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets.
When there is no competitive advantage or unique positioning, the product/service will be just a commodity and cannot actually help organization increase its ROE. 6. Decreasing the number of models in the company's line-up from 2 to 1.
Decreasing models will adversely impact the P/Q rating

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