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A manufacturing company's profits and sales are growing rapidly. As a consequence its stock price has grown at an average rate of 30% a year.

A manufacturing company's profits and sales are growing rapidly. As a consequence its stock price has grown at an average rate of 30% a year. The stock is currently trading at $95 per share. Would you recommend that the company complete a stock split or starts an annual 10% stock dividend? Why? (Select from the answers below.)

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A) Stock split because it is voluntarily and shareholders are not required to accept this dividend.

B) Stock split because of the size of the stock's growth rate as well as the fact that it is currently already trading outside of the optimal range.

C) Stock dividend, because it signals to outside investors that the company is doing well.

D) Stock dividend, because the investors prefer a cash pay out.

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