The Directors of Hager Mills Prefer to Keep the Price

question 154

Multiple Choice

The directors of Hager Mills prefer to keep the price of the firm's stock within a price range of $30 to $45 a share. Currently, the stock is selling for $63 a share due to the improving growth outlook of the firm. Given this, the directors are most apt to:

• A) Pay a special dividend.
• B) Implement a stock repurchase program.
• C) Declare a 2-for-1 stock split.
• D) Declare a 1-for-2 reverse stock split.
• E) Pay a liquidating dividend.

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Definitions:

Mergers and Acquisitions

Business activities where companies are consolidated or purchased to expand operations or enter new markets.

Strategic Plans

Long-term action plans designed to position an organization for competitive advantage and successful achievement of its overall goals.

Operational Plans

Detailed plans outlining how the strategic goals of an organization will be achieved through specific actions within a short to medium timeframe.

Facilities Plan

A strategic plan that outlines the physical resources, spaces, and environments necessary for an organization to operate efficiently.