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If the amount of external funding is too high for the company, which of the following action can it take?

a) Reducing its dividend payout b) Increasing its dividend payout c) Increasing its sales growth rate d) Reducing its accounts payable (in relation to sales)

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Question added by Khalid Khan , Finance Manager / Chief Accountant , IDEAL ENTERPRISES LLC (Construction & Contracting)IDEAL LINK SOLUTIONS (IT SOFTWARE & HARDWARE)
Date Posted: 2014/03/04
Inder Garg
by Inder Garg , Finance Manager , M.H. Alshaya Co. WLL

Reducing its dividend payout

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The answer is:

 

a) Reducing its dividend payout

Subash Lamichhane
by Subash Lamichhane , Consulting Manager , Mavensmark Management Services

Reducing its dividend payout that will help to decrease the Gearing of the company.

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