Because of a new product line, your company’s sales over the last few months have increased significantly. As a result, the amount of cash held by the company has increased to levels never experienced before. An evaluation by the company’s financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders.
Explain how you think the stockholders would react to this information.
Discuss the options you have to deal with the concerns of the stockholders without creating any additional risk.
Sample Solution
