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Which strategy should the management choose to maximize shareholder value?

Please help me! Thanks A company has the following Financial Ratios for the year: Current Ratio – 2.5 and Quick Ratio – 2.4 The industry averages are 2.4 and .97, respectively. Briefly, what conclusion you can draw from the analysis. . . .

Please help me solve the below problemstep-by-step. Instructions: Please make sure that you show all your workwhen solving the problems. Feel free to make any assumptionswhenever you feel necessary. Just make sure that you clearly stateyour assumptions. 6) Analysts expect MC, Co. to maintain a dividendpayout ratio of 35% and enjoy an expected growth rate of 12% peryear for the next 5 years. After the fifth year, all earnings willbe paid out as dividends. The required rate of return on MC, Coequity is 8%. Question: Suppose 5 years have gone by and the company has tomake a decision on how to move forward. It can either pay out allearnings as dividends without considering any growth opportunities,or choose a growth strategy where the company will expand into newlines of business in global markets. If the management chooses thisstrategy, the payout ratio will be reduced down to 20% from 35%,and the company will be able to maintain a growth rate of 7%forever. Which strategy should the management choose to maximizeshareholder value? . .


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