Bonus Share Issues and Share Splits: Split-Div Ltd Has Issued

question 31

Multiple Choice

Bonus share issues and share splits: Split-Div Ltd has issued quarterly dividends of $0.10 per share each quarter over the last few years. This quarter Split-Div initiated a 2-for-1 share split. What is the minimum quarterly dividend the board of Split-Div should approve to avoid sending a bad signal to investors?

• A) $0.02 per share
• B) $0.05 per share
• C) $0.10 per share
• D) $0.20 per share

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Definitions:

Newly Synthesized DNA

DNA strands that have been recently formed during the process of DNA replication.

Parental Strand

The original strand of DNA that serves as the template for the production of a complementary strand during DNA replication.

Eukaryotic Chromosomes

Linear structures found in the nucleus of eukaryotic cells, made up of DNA and proteins, that contain genes and function in heredity and gene expression.

Telomerase

An enzyme that adds DNA sequence repeats to the ends of DNA strands in the telomere regions, which are found at the ends of eukaryotic chromosomes. This activity can preserve the length of chromosomes and has implications in aging and cancer.