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:

Inheritance

The assets, rights, and obligations passed down to heirs or legal successors after someone dies.

Mislaid Property

Refers to personal property that is unintentionally left by its owner in a place where it is likely to be found and cared for, such as leaving a book in a cafe.

Abandoned Property

Property that has been discarded by its owner, who has no intention of reclaiming it.

Lost Property

Items that are unintentionally left by their owner at an unspecified location, where the owner retains the right to reclaim.