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The Embattled Management Team at Ram Inc

Question 40

Multiple Choice

The embattled management team at Ram Inc. has promised a new low power consumption core microprocessor incorporating graphics capability for the past two years. The share price has declined from $25 to $17 in the same period even though earning have stayed the same. How might management convey success is at hand in a way that is believable to the market:


A) Call a press conference to announce success.
B) Announce that agency costs have been reduced.
C) Raise the dividend significantly.
D) Inform shareholders about information asymmetry.
E) Institute a share repurchase program.

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