Which of the Following Is a Reason for a Firm

question 31

Multiple Choice

Which of the following is a reason for a firm to announce a stock split?

• A)The price of the stock is too high.
• B)The firm wants to reduce its dividend.
• C)It is an alternative to a stock repurchase, which is more costly.
• D)All of these are correct.

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Definitions:

Adolescence

The period of life transitioning from childhood to adulthood, typically involving significant physical, psychological, and social changes.

Puberty

The period of sexual maturation during which a person becomes capable of reproduction.

Adulthood

The period in the human lifespan when an individual is considered fully developed and mature, both physically and psychologically.

Erik Erikson's Theory

A psychoanalytic theory of human development that outlines eight stages of psychosocial development from infancy to adulthood.