Power X is a utility company in the Midwest. It's revenues and profitability have been rather stable and are growing at a slow but steady pace. Therefore, Power X is building its cash balances on its balance sheet. Which of the following actions do you recommend its management takes?

A stock dividend.

A large, one-time dividend.

A large stock repurchase program.

An increase in its regular dividends.

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.)

Group of answer choices

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.

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

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

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