Which of the Following Tend to Increase the Appeal of a Firm's

question 9

Multiple Choice

Which of the following tend to increase the appeal of a firm's stock to the average investor?
I.a cessation of dividends by a firm which has a long history of increasing dividends
II.the distribution of a special dividend by a dividend-paying firm
III.a reverse stock split for a low-priced equity
IV.the declaration of a stock dividend by a growth firm

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

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Definitions:

Constant-Cost Industry

An industry where input prices and production costs remain stable as output increases.

Horizontal Line

A straight line that runs left to right across the plane and has a slope of zero, indicating no change.

Elon Musk

A technology entrepreneur and business magnate known for his role in founding and leading Tesla, SpaceX, and other innovative companies.