how to maximize shareholder value

Question

Your company, Flush Corp, is sitting on a large pile of cash that isn’t needed for any operational purpose. Additionally, your company does not have any projects in its pipeline that are projected to earn more than your cost of capital. As Flush Corp’s CFO, what should you do to maximize shareholder value?

a. Declare a dividend.

b. Buy back your shares in the open market.

c. Build new infrastructure.

d. Issue new shares.

e. None of the above.