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

question 27

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 stock
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:

Units Of Output

A measurement of productivity that represents the total quantity of goods or services produced by a firm or economy.

Labor

The human effort, including both mental and physical activities, employed in the production of goods and services.

Machines

Mechanical or electronic devices designed to perform specific tasks, often used to enhance efficiency and productivity in manufacturing or processing.

Total Cost

The complete expenditure incurred for producing or offering a product or service, including fixed and variable costs.