Which of the following are effective ways for managers to try to boost a company

Question

Which of the following are effective ways for managers to try to boost a company's stock price? Increase the company's dividend payments to shareholders each year by at least $0.05 per share, repurchase shares of common stock, and make every effort to achieve annual increases in earnings per share. 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%, and repurchase shares of common stock. 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 5%, and not issue more than 5,000 shares of common stock in any one year. Spend amounts on corporate citizenship and social responsibility that are above the industry average, boost the company's dividend payout ratio to more than 100%, and issue additional shares of common stock to raise the funds to pay off all long-term debt within 2 years. Cut the dividend to zero and issue additional shares of stock so as to increase the funds available for quickly paying off all long-term debt (ideally in no more than 2 years); then the company should avoid further use of long-term debt, striving to achieve and maintain a credit rating of A or A+.

Explanation / Answer

The correct option is B

Explanation : Repurchase helps to boost stock prices because repurchases are viewed as positive signals from investors and repurchase is often motivated by management's belief that the firms shares are undervalued. Also maintaining a dividend payout ratio of 50% indicates the percentage of net income paid out during the year in the form of cash dividends .

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