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What should abby do with the buildup of cash

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Reference no: EM132992286

Problem 1: Abby is a large and successful pharmaceutical company. The company has many highly profitable drugs with a few years of patent protection. Earnings have increased significantly for the past few years. However, it is difficult to see the growth rate could continue. The company has paid out 40% of earnings as dividend. With strong sales and operating cash flow, the company has had a large sum of cash. What should Abby do with the buildup of cash? Defend your position. You can create a potential scenario if you would like.

Reference no: EM132992286

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