If a Management Team Wishes to Boost the Company’s Stock Price Answer

If a management team wishes to boost the company’s stock price, then it should consider actions to:

  • boost the company’s dividend payout ratio to more than 100%, increase the company’s retained earnings, and issue sufficient shares of common stock to raise the funds to pay off all long-term debt within 2 years.
  • increase the S/Q rating on the company branded footwear, spend additional money or corporate citizenship and social responsibility, pay a dividend each year that equals projected EPS, and keep the company’s image rating above 75.
  • repurchase shares of common stock, increase earnings per share annually by amounts that meet or beat investor expectations and raise the company’s dividend payments to shareholders (by at least $0.10 and preferably $0.25 or more for the increase to have much impact on the stock price).
  • quickly pay off all long-term debt, keep the company’s dividend payout ratio below 50%, and issue no more than 5,000 shares of common stock in any given year.
  • pay a steady dividend of $1.00 per year, avoid the use of short-term loans, boost total stockholders’ equity by 5% to 10% annually, and maintain a credit rating of at least an A.

Answer

Repurchase shares of common stock, increase earnings per share annually by amounts that meet or beat investor expectations and raise the company’s dividend payments to shareholders (by at least $0.10 and preferably $0.25 or more for the increase to have much impact on the stock price).

Your reaction

NICE
SAD
FUNNY
OMG
WTF
WOW

Leave a Comment:

Your email address will not be published. Required fields are marked *