Which of the Following Is a Reason for a Company

question 186

Multiple Choice

Which of the following is a reason for a company to announce a stock split?

• A) to reward investors
• B) to increase total stockholders' equity
• C) to decrease the market price at which the stock is trading
• D) to provide the shareholders with something of value, when the company cannot afford a cash dividend

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Definitions:

Understanding and Prediction

The cognitive processes of comprehending information or situations and anticipating future events or outcomes.

Science Goal

An objective or aim related to gaining knowledge, understanding phenomena, or solving problems using systematic and empirical methods characteristic of the sciences.

Scientific Method

A systematic process of inquiry involving observation, hypothesis formulation, experimentation, and conclusion to test scientific theories and gain knowledge.

Research Method

The systematic approach to collecting, analyzing, and interpreting data in order to increase understanding of a topic or issue.