A Corpwants to Throw Something to Its Shareholders This Year, but but Is

question 6

Multiple Choice

A Corp.wants to throw something to its shareholders this year, but is cash poor.The board decides on a two-for-one stock dividend: common on common.The shareholders of record at the time of the dividend

• A)Realize a taxable dividend equal in amount to the value of their pre-split shares
• B)Have the value of their holdings doubled, taxation on which is postponed until the shares are sold
• C)Double their shares, allocating the pre-split basis in the stock equally among the shares
• D)Have nontaxable return of all their capital

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Definitions:

Trial Close

A technique used in sales to ask a prospective customer a question that assumes the sale is going to be made, in order to gauge their readiness to purchase.

Close-Ended Question

A type of question designed to receive a specific, usually "yes" or "no," answer, limiting the extent of response.

FAB Sequence

Features, Advantages, and Benefits sequence used in sales and marketing to communicate the value of a product or service to customers.

Business Proposition

An offer or suggestion, typically involving a product or service, presented to a potential client or partner.