Question 39 The primary reason for a corporation to engage in a stock split is to Not yet answered Points out of 1 Flag question Select one: O A. indicate its unexpectedly low earnings per share. O B. make a stock dividend payment to shareholders. O C. assist in the takeover of another firm. O D. lower the stock price to a more popular trading range. Question 40 Knox Inc. is deciding between the two dividend payment plans below: Not yet Year Plan B answered Points out of 1 P Flag question 1 Plan A $3.00 $3.05 $3.10 $3.15 $0.50 $1.75 2 3 $3.25 $6.80 4 Stockholders are expected to discount Plan A by 12% and Plan B by 14%. Based upon the present value of the future dividends, which plan will the stockholders prefer? Select one: O A. Plan A O B. Plan B O C. Either, since both plans pay equal total dollar amounts. OD. Neither, since the dividend payout ratios are the same