If a Company Does Not Have Enough Cash to Pay

question 97

True/False

If a company does not have enough cash to pay out regular dividends, but still wishes to give the shareholders something that they would consider of value, the company should consider doing a stock split.

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Definitions:

Porosity

A measure of how much of a rock is open space, which can hold water, oil, or gas.

Dry

indicates a lack of moisture or water content.

Uncompacted Clay

Clay that has not been compressed, retaining a high water content and low strength.

Unsaturated Zone

The layer of ground above the water table where soil and rock particles are not fully saturated with water.