Question
is someone whle to help me on these 29. Why do corporations sometimes split their stock? A. So investors wont have to pay extra for
is someone whle to help me on these
29. Why do corporations sometimes split their stock?
A. So investors wont 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 companys 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 companys stock price usually drops when it stops repurchasing its own stock
B. A companys stock price usually drops when it announces it is increasing its dividend
C. A companys stock price usually drops when it announces it is eliminating its dividend
D. Both A and C
E. None of the above
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