Which Two of the Following Are the Best Justifications for a Reverse

question 2

Multiple Choice

Which two of the following are the best justifications for a reverse stock split?
I.combine a reverse stock split with a stock repurchase to enable a firm to go dark
II.increase the respectability of the stock
III.avoid delisting
IV.reduce transaction costs for shareholders

• A)I and II only
• B)I and III only
• C)II and III only
• D)II and IV only
• E)III and IV only

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Definitions:

Preattentive Process

Cognitive processing that occurs without conscious awareness, quickly analyzing basic features of stimuli in the environment.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Preattentive Processes

Cognitive processes that occur without conscious awareness, automatically extracting certain elements from the environment.

Divergent Processes

Cognitive operations that involve thinking in multiple directions to generate a variety of solutions to problems.