What Can a Company Do to Attract Investors When the Value

question 70

Multiple Choice

What can a company do to attract investors when the value of their stock becomes too high?

• A) Use the increased value for equity financing
• B) Institute a market cap
• C) Increase earnings per share
• D) Buy back some shares
• E) Issue a stock split

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Definitions:

Work Process

A work process is a series of actions or steps taken in order to achieve a particular end in the context of professional or organizational tasks.

Asynchronous Communication

Communication that does not require participants to be concurrently engaged, allowing responses at individual convenience.

Best-fitting Regression Line

A line through a scatter plot of data points that best expresses the relationship between those points, typically found using least squares regression.

Slope

The slope is a measure of the steepness or incline of a line, defined as the ratio of the change in the y-value over the change in the x-value between two points on the line.