Glo-Bus 2017 - AC Camera and
UAV Drone - Business Strategy -
Quiz 2 Answers - P1
WWW.YOUTUBE.COM/ECOMFTU MARCH 2017
NEW Glo-Bus 2017 - AC Camera and UAV Drone - Business Strategy Action-Capture Camera Design
GLO-BUS 2017 - Quiz 2 Answers - P1
1.
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,10/22/2017 Glo-Bus 2017 - AC Camera and UAV Drone - Business Strategy - Quiz 2 Answers - P1
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?
- Making it company practice to issue additional shares of stock each year
and use the proceeds to pay down the debt outstanding until the
company's debt-equity percentages reach 20% or lower for debt and 80%
or more for equity
- Increasing annual dividend payments to shareholders most every year
- Making it a frequent management practice to allocate a portion of internal
cash flows from operations to repurchasing shares of the company's common
stock
- Putting increased attention on boosting operating profits in all four geographic
regions -- the resulting growth in operating profits companywide will act to
increase total net profits and EPS; higher earnings per share are an important
driver of the company's stock price
- When the company's stock price drops because of unexpectedly weak company
performance in the prior year but is expected to recover and rise in the next
several decision rounds.
opting to borrow money preferably in the form of 1-year loans from the
Global Community Bank (but not so much as to impair the company's credit
rating) and using the borrowed funds to repurchase outstanding shares of
common stock
2.
Which of the following is NOT an action company co-managers can take that has good
potential
for increasing the company's average ROE and helping the company meet or beat the
investorexpected ROE targets in upcoming years?
- Pursuing efforts to boost total operating profits in all four geographic regions --
the resulting growth in operating profits companywide will increase total net
profits (a company's net profits are the numerator in calculating the company's
ROE)
- Paying a small annual dividend to shareholders (less than $0.50 per
share) which is increased annually by about $0.05 per shares; a small
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but growing dividend provides the company with more cash to fund
capital expenditures and/or pay down bank borrowings ahead of
schedule
- Using a portion of the company's internal cash flows from operations for the
next several years to repurchase shares of common stock
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