A reverse stock split a. is more popular in bull markets than in bear markets. b. eliminates any previous stock dividend. c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability. d. means the company exchanges fewer new shares in place of older shares.
A reverse stock split a. is more popular in bull markets than in bear markets. b. eliminates any previous stock dividend. c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability. d. means the company exchanges fewer new shares in place of older shares.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 3MC
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A reverse stock split
a. is more popular in bull markets than in bear markets.
b. eliminates any previous stock dividend.
c. occurs when a company wants to increase the price of its common stock because the market hasn't recognized the improvements the company has made in achieving profitability.
d. means the company exchanges fewer new shares in place of older shares.
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