Tuesday, November 24, 2009

FIN622 GDB

ANSWER: 1

1- Should maintain the Debt Equity ratio to stable the stock price and control the dividend to maintain the stock price.
2- To hold the dividend and increase the proportion to increase the price of stock.

1 comment:

geni said...

Mr. Sami, Chief Financial Officer (CFO) of SNT Company, is planning to change the working capital policy of the company. Currently, the company is employing conservative working capital policy but Mr. Sami has planned to set the working capital policy as aggressive. What would be the effect on the liquidity and profitability of the company while moving from a conservative working capital policy to an aggressive working capital policy?