Stock Splits Can Be Used To

question 82

Multiple Choice

Stock splits can be used to:

• A)adjust the market price of a stock such that it falls within a preferred trading range.
• B)decrease the excess cash held by a firm thereby lowering agency costs.
• C)increase both the number of shares outstanding and the market price per share.
• D)increase the total equity of a firm.
• E)adjust the debt-equity ratio.

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Definitions:

Human Communication

Human communication involves the exchange of information between individuals through verbal, non-verbal, written, and digital mediums to convey and understand messages.

Interviews

A qualitative research method involving direct, face-to-face conversation between the interviewer and the respondent to gather information or opinions.

Nonprobability Sampling

A sampling method where elements of the population do not have a known or equal chance of being selected, often used for exploratory research or when probability sampling is not feasible.

Probability Sampling

A sampling method that gives every member of the population a known chance of being selected.