While Captive,Inc

question 106

Multiple Choice

While Captive,Inc.has been in business for over 50 years,newly developed products pushed the firm's year-over-year growth rate to 35% during the latest three years.The firm is proud of its history of paying dividends,but the vigorous recent growth of the firm has left it cash challenged.Which of the following policies/procedures would you consider best under the circumstances?

• A) Borrow long-term to pay the current dividend.
• B) Look seriously for a merger partner.
• C) Enter into a long-term stock repurchase program.
• D) Substitute a stock dividend for the current cash dividend.

---

Definitions:

Store Sales

Periodic events where retailers offer products at discounts to increase traffic and sales volume.

Sales Calculation

The process of determining the total revenue generated from goods or services sold over a specific period.

Wheel Of Retailing

A theory suggesting that retail business goes through a cycle starting from entering the market as a low price, low margin operation, to becoming more upscale with higher prices and services.

Retail Outlets

Physical stores or shops where goods are sold directly to the consumer.