Which of the Following Is a Reason for a Firm

question 4

Multiple Choice

Which of the following is a reason for a firm to announce a stock split?

• A) The price of the stock is too high.
• B) The firm wants to reduce its dividend.
• C) It is an alternative to a stock repurchase, which is more costly.
• D) All of the options are correct.

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Definitions:

Technological Improvements

Innovations and advancements in technology that increase efficiency, productivity, or bring new products, often leading to economic growth.

Equilibrium Price

The rate at which the amount of a product or service that consumers want to buy matches the amount that producers want to sell, achieving equilibrium in the market.

Uber

A technology platform that offers ridesharing, ride service hailing, food delivery, and a courier service, transforming the way people access transportation.