Which of the Following Is NOT a Widely Stated Reason

question 88

Multiple Choice

Which of the following is NOT a widely stated reason as to why firms split their stock?

• A)To remain at or return to a preferred trading range
• B)A signal to the market about expected continued strong performance
• C)Increased liquidity
• D)To lower dividends per share and thus the total cost of dividends for the firm

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Definitions:

Voluntary Exchange

A transaction where two parties trade goods or services by mutual agreement and benefit.

Better Off

A term used to describe a situation in which an individual, household, or group has improved economically, often as a result of higher income, greater wealth, or access to more goods and services.

People

Human beings collectively, considered as the members of a community, society, or workforce.

Policy Change

A modification or adjustment to existing rules, protocols, or regulations within an organization, system, or government.