Reverse Stock Splits Can Be Used to

question 65

Multiple Choice

Reverse stock splits can be used to

• A)adjust the debt-equity ratio such that it falls within a preferred range.
• B)increase the excess cash held by a firm.
• C)increase both the number of shares outstanding and the market price per share simultaneously.
• D)increase the total equity of a firm.
• E)avoid delisting.

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Definitions:

Segmentation

The division of body regions into segments, a common process in the development and organization of organisms.

Pyloric Sphincter

A muscular valve that opens and closes to regulate the passage of partially digested food from the stomach to the duodenum.

Chyme

A semi-fluid mass of partly digested food that is passed from the stomach to the duodenum.

Gastric Contents

The mixture of food, digestive juices, and enzymes present in the stomach.