GoodSignal Co

question 80

Multiple Choice

GoodSignal Co. is currently trading for $10 with 1 million shares outstanding. Which of the following actions would be the strongest signal to investors that management believes that the long-term prospects for a company have improved?

• A) Pay a $0.20 extra dividend in addition to the company's $0.20 regular quarterly dividend
• B) Increase the company's regular quarterly dividend from $0.20 to $0.40
• C) Initiate an open-market stock repurchase of 2 percent of the company's stock
• D) Pay a $0.20 special dividend by selling a major fixed asset

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Definitions:

Deindividuation

A concept in social psychology that refers to the loss of self-awareness in groups, which can lead to disinhibited and impulsive actions.

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone.

Group Outcomes

The results or consequences of actions taken by a group as a whole, which can affect the group’s cohesion, performance, and individual member's satisfaction.

Less Accountable

Refers to a reduced sense of responsibility or obligation to justify one's actions or decisions to others.