28. A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to $11 per share. How much have the stockholders gained or lost from the reverse split? A. Gained $1,100,000 B. Gained $100,000 C. Zero D. Gained $20,000 E. None of the above 29. Why do corporations sometimes split their stock? A. So investors won't have to pay extra for odd lots B. To get their stock price into a range where stockholders can buy round lots C. To avoid extra taxes on high stock prices D. To avoid drawing undue attention on their company E. None of the above 30. Why do companies like to smooth their dividend payments over time? A. To be conservative and not raise them unless they are certain they can keep paying them B. To transfer wealth from bondholders to stockholders C. To minimize volatility of their long-term assets D. To moderate the political process E. None of the above 31. Why do stock prices usually drop on a company's ex-dividend date? A. Paying a dividend is bad news B. They will no longer be able to deduct the dividend on their corporate tax return C. The company no longer owns the amount of cash paid as the dividend D. Investors wish their cash tied up for less than 2 days E. None of the above 32. Which of the following are true? A. A company's stock price usually drops when it stops repurchasing its own stock B. A company's stock price usually drops when it announces it is increasing its dividend C. A company's stock price usually drops when it announces it is eliminating its dividend D. Both A and C E. None of the above 33. Why might a company do a reverse stock split? A. Its stock price is so low it might get delisted from its exchange B. Its stock price is too low to do share repurchases C. Its stock price is too high for investors to buy round lots D. Its stock price is too high to attract attention from stock analysts E. None of the above