Which of the Following Tend to Increase the Appeal of a fiRm's

question 43

Multiple Choice

Which of the following tend to increase the appeal of a firm's stock to the average investor? I.a cessation of dividends by a firm which has a long history of increasing dividends
II) the distribution of a special dividend by a dividend-paying firm
III) a reverse stock split for a low-priced equity
IV) the declaration of a stock dividend by a growth firm

• A)I and III only.
• B)II and IV only.
• C)I, II, and IV only.
• D)II, III, and IV only.
• E)I, II, III, and IV.

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Definitions:

Price Matching

A policy by retailers to match lower prices offered by competitors for the same product to attract or retain customers.

Geographical Pricing

Pricing strategy varying the price of products based on geographical location to reflect costs, market conditions, or consumer purchasing power.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and differentiated competition.