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sandyas
Nov 6, 2009, 10:24 AM
2.       (8) Ajax has a return on equity that is less than the required return.
a.       Are they re-investing their money wisely? Explain.
b.      Investors now demand an increase in the payout rate. Ajax’s management refuses. Briefly discuss 2 reasons that would cause Ajax to refuse.
c.       Briefly discuss one way investors can respond to Ajax’s refusal?