Question

Which of the following is an action company co-managers should seriously consider in trying to improve the company's credit rating? (The financial meausre used in determining company credit ratings are discussed in the Help document associated with page 5 of the Camera & Drone Journal.)
o Increasing the size of the company's dividend payments to stockholdersthis helps reduce the amount of retained earnings on the company's balance sheet (which in turn helps increase the company's interest coverage ratio)
O Placing increased attention on improving operating profits and operating profit margins in all four geographic regions -the resulting growth in operating profits companywide will increase the company's interest coverage ratio Using a portion on the company's internal cash flows and new issues of common stock to pay higher dividends to shareholders
ONot increasing the compensation paid to PAT members (until the desired credit rating is achieved)-this will help keep production costs for both cameras and drones from rising
O withdrawing all funds ronn the company's retained earnings account on the balance sheet and using the cash to pay off bank loans

Answer 1

Answer:

O Placing increased attention on improving operating profits and operating profit margins in all four geographic regions -the resulting growth in operating profits company wide will increase the company's interest coverage ratio Using a portion on the company's internal cash flows and new issues of common stock to pay higher dividends to shareholders .

Explanation:

The bank managers of different companies should try to consider the improvement of their operating profits as well as the profit margins in all their sectors. This will also boast the companies' cash flow. In addition, it will improve the outlooks of the companies to the public. This is very vital to ensure business continuity.