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Which of the following will NOT reduce the share price? Assume an all equity firm and no information, agency or leverage effects. O A. A
Which of the following will NOT reduce the share price? Assume an all equity firm and no information, agency or leverage effects. O A. A 2-1 stock split (Split ratio = 2) OB. A stock dividend OC. A cash dividend OD. A stock repurchase at a price that is less than the pre- announcement price Berkshire Hathaway B shares are trading for $125. Warren Buffett thinks that this price is too low and is attracting too many uninformed, short-term investors. What is the best way for Warren to increase the stock price? OA. A cash dividend OB. A stock repurchase on a day when the price is 10% below its fair value. O C. A1-for-10 (S = 0.10) reverse split OD. A stock dividend
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