What strategy can management implement to enhance the company's stock price?

Repurchasing shares and increasing dividends are effective strategies for enhancing a company's stock price because they directly improve shareholder value. When a company repurchases its shares, it reduces the total number of shares in circulation. This can lead to an increase in earnings per share (EPS) as the same amount of earnings is spread over fewer shares, which may make the stock more attractive to investors. Additionally, increasing dividends signals to investors that the company is financially healthy and confident in its future cash flows, which can enhance investor sentiment and attract more buyers to the stock.

Furthermore, these strategies often lead to a perception of the company as a stable and reliable investment, which can boost demand for its shares, consequently raising its market price. Investors often respond positively to companies that return cash to them via dividends, reinforcing a strong investment appeal.

In contrast, the other strategies may not effectively enhance the stock price. While reducing the number of shares in circulation can help with EPS, it does not necessarily reflect broader financial health or growth potential in the same way that repurchases and dividends do when done strategically. Focusing solely on increasing revenue does not guarantee stock price appreciation if it does not translate into improved profitability or shareholder returns. Limiting production capacity may lead to higher short-term pricing