i) Converting short-term borrowings into long-term loans could provide more financial stability and reduce pressure on the company’s cash flow by spreading out payments over a longer period. However, this might increase interest expenses and reduce flexibility in responding to changing business conditions.

ii) Paying higher cash salaries might improve employee satisfaction in the short term, but offering a share option element could align employees’ interests with the long-term success of the company and encourage them to contribute more actively to the company’s growth.

iii) Maintaining or reducing the dividend would allow Ghanalux to retain more earnings, which could be used to reduce the bank overdraft and strengthen the company’s financial position. However, reducing dividends may be unpopular with shareholders.

iv) Converting surplus dollar cash into cedis could reduce foreign exchange risks, but Ghanalux should be mindful of currency fluctuations and consider whether holding on to dollars might be more beneficial if the cedi depreciates further.