Which of These Is not a Reason for Declaring a Share

question 9

Multiple Choice

Which of these is not a reason for declaring a share dividend?

• A)To conserve the company's cash instead of declaring a cash dividend
• B)To decrease the market price of the shares
• C)To raise extra capital for the company
• D)To stave off a takeover

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Definitions:

Benefit

A term referring to the positive outcome or satisfaction received from consuming a good or service or from a particular economic activity.

Nash Equilibrium

A situation in a non-cooperative game where each player's strategy is optimal, given the strategies of all other players in the game.

Payoff

The return or gain that an individual receives from an investment or action.

Strategy

A plan of action or policy designed to achieve a major or overall goal, especially in business or politics.