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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Definitions:

Advancement

The process of promoting or moving forward towards a more developed or improved state, often referring to careers, technology, or society.

Colored People

An outdated term historically used in the United States to refer to African Americans, now considered derogatory and replaced by more respectful terms.

Slavery

A system in which individuals are owned by others, deprived of personal freedom and forced to perform labor or services without compensation.

Controversy

A prolonged public disagreement or heated discussion, often involving differing opinions on a particular subject.