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If a company announces a stock dividend or stock split, the market price of the stock will tend to rise initially. However, if in the
If a company announces a stock dividend or stock split, the market price of the stock will tend to rise initially. However, if in the next few months following this event, what must happen to prevent the stock from retreating to the original market price range prior to the announcement of the dividend or split? Select one: a. Restructuring of long-term debt b. Increase in earnings and cash dividends c. Stock buyback announcement d. Reduction of weighted average cost of capital
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