All of the Following Are Rationales Given for a Stock

question 116

Multiple Choice

All of the following are rationales given for a stock dividend or split except:

• A) the price will not fall proportionately to the share increase.
• B) an optimum price range does not exist.
• C) there is positive informational content associated with the announcement.
• D) conservation of corporate cash.

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Definitions:

Recognition-Primed Decision-Making

A model of how people make quick, effective decisions based on their expertise and past experiences.

Mental Simulation

The cognitive process of imagining or projecting oneself into different scenarios or situations to forecast outcomes or understand phenomena.

Elimination by Aspects

A decision-making process where alternatives are discarded based on the lack of one or more desired attributes.

Pre-Choice Screening

The process of evaluating alternatives or options before making a decision or choice, often using set criteria or principles.