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You are a RR CEO do you Reinvest profits in Railroad Infrastucture Or pay divididends?
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[quote]QUOTE: <i>Originally posted by TerminalTower</i> <br /><br />You are a board member of a Class One Railroad,,,You show a good profit this year and you showed a good profit last year which is no easy task... <br />Do You,, reinvest the profits in buying new locomotives and track upgrades and hope that will result in increased book value of the stock as the railroads infrastructure and Rolling stock is increased in value,,, <br />Or Do you declair a Dividend in the hopes that the Shareholders will reinvest there dividends in buying more stock and increasing the value of the company that way? Also remember that the Employees Pension Fund owns a huge chunk of stock in your railroad[:)] <br /> <br />[/quote] <br /> <br />So which is it? Am I supposed to respond as the CEO, as your caption says, or as a Board Member, two completely different roles? <br /> <br /> <br />LC
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