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Question 15 (4 points) Listen A firm in the energy sector has some excellent growth prospects. The firm's stock price is currently trading at a

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Question 15 (4 points) Listen A firm in the energy sector has some excellent growth prospects. The firm's stock price is currently trading at a range higher than its historical trading range. In this context, the firm wishes to cater to its loyal shareholders and at the same time needs to reinvest its current profit to fuel the rapid growth. Which one of the following the firm most like do? 1) Small stock dividend 2) Liquidating dividend 3) Stock split 4) Reverse stock split Question 16 (4 points) Listen In the context of a legally defined merger, which one of the following statements is correct? 1) The acquired firm retains its identity and absorbs only the assets of the acquiring firm 2) The acquired firm is completely absorbed and ceases to exist as a separate legal entity 3) A new firm is created from the assets and liabilities of both the acquiring and acquired firms 4) A new firm is created which includes all the assets and liabilities of the acquiring firm plus the assets only of the acquired firm

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