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:

Sabbaticals

Periods of paid or unpaid leave granted to employees, often academics, to study, travel, or rest.

Teresa Amabile

An American psychologist and professor who researches creativity, innovation, and how they are influenced by social and environmental factors.

Progress And Support

The concept of advancing or moving forward in a particular field while receiving assistance or encouragement.

Profit Sharing

A company policy where employees receive a portion of the company's profits, in addition to their regular salary, based on predetermined criteria.