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:

Whites

Refers to people belonging to groups, primarily of European descent, characterized by lighter skin colors, a major demographic category in racial and ethnic classifications.

Blacks

People of African descent or individuals characterized by dark skin color, often used in discussions of race, culture, and socio-political identity.

Strike Insurance

A financial product or policy designed to support workers financially in the event of a strike, offering compensation for lost wages.

Company Executives

Individuals in senior management positions within a company who are responsible for decision-making and strategic planning.