Stock Dividends and Stock Splits: Split-Div, Inc

question 21

Multiple Choice

Stock dividends and stock splits: Split-Div, Inc., 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 stock 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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An American multinational automaker that has its main headquarters in Dearborn, Michigan, known for pioneering large-scale manufacturing of cars.

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