Liquid Farms Is Considering a 1-For-2 Reverse Stock Split

question 16

Multiple Choice

Liquid Farms is considering a 1-for-2 reverse stock split. Its stock is currently selling for $10 per share. Liquid plans to pay a dividend equal to $0.40 per share after the split. But, it would like to pay an equivalent dividend per share even if the split does not take place. What should the per share dividend be if Liquid doesn't split the stock?

• A)$0.40
• B)$0.20
• C)$0.80
• D)$4.00
• E)$2.00

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Definitions:

Tokenism

The practice of making only a perfunctory or symbolic effort to include or represent members of minority groups.

Hegemonic Masculinity

The historically dominant, socially constructed form of masculinity—characterized by physical prowess, individuality, aggressive heterosexuality, and independence—against which other forms of masculinity are measured.

Predominately White

Referring to a group or area where the majority of individuals are of European descent or identify as White.

Kenyan-Born

Individuals who were born in Kenya, often referenced to discuss the experiences and identities of people from or in the Kenyan diaspora.