All of the Following Are Rationales Given for a Stock

question 93

Multiple Choice

All of the following are rationales given for a stock dividend or split EXCEPT

• A) the price will not fall proportionately to the share increase.
• B) an optimum price range does not exist.
• C) there is positive informational content associated with the announcement.
• D) conservation of corporate cash.

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Definitions:

Peer Appraiser

An employee designated to assess and review the performance of their colleagues as part of a company's evaluation system.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.

Core Competencies

Fundamental skills, knowledge, and abilities that are essential for an organization or individual to stand out in their field.

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the business context.