If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stock price?

I. Decrease its asset turnover
II. Increase its inventory
III. Increase its gross margin
IV. Issue a stock dividend

A)I and IV
B)II and III
C)III
D)I

Question

If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stock price?

I. Decrease its asset turnover
II. Increase its inventory
III. Increase its gross margin
IV. Issue a stock dividend

A)I and IV
B)II and III
C)III
D)I

Quizplus · Accepted Answer

The Answer is C

If a Company's Cost of Capital Increases Unexpectedly, Which of the Following