The Directors of Highlands Marble Works Established Three Goals for the Coming

question 321

Multiple Choice

The directors of Highlands Marble Works established three goals for the coming year: 1) transfer some of the firm's excess cash to the shareholders; 2) increase the earnings per share; and 3)
Maintain a constant dividend. Which one of the following actions best meets these goals?

• A) Increase the regular dividend.
• B) Pay a liquidating dividend.
• C) Pay a stock dividend.
• D) Do a reverse stock split.
• E) Do a stock repurchase.

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