Why do some companies split their stock?

What will be an ideal response?


Answer: A stock split reduces the number of shares outstanding while decreasing the price per share. Firms often declare splits when their stock is trading at a price which they consider to be too high to attract the types of investors they seek.

Business

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The Lagrange multiplier reflects a change in the objective function from a unit change in the right-hand-side value of a constraint

Indicate whether this statement is true or false.

Business

Niendorf Corporation's 5-year bonds yield 7.75%, and 5-year T-bonds yield 4.80%. The real risk-free rate is r* = 2.75%, the inflation premium for 5-year bonds is IP = 1.65%, the default risk premium for Niendorf's bonds is DRP = 1.20% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t - 1) 0.1%, where t = number of years to maturity. What is the liquidity premium (LP) on Niendorf's bonds?

A. 1.42% B. 2.10% C. 2.17% D. 1.75% E. 1.56%

Business

Identify a true statement about the conventional level of moral development.

A. One seeks to balance the concerns for self with those of others and the common good. B. Individuals tend to follow ethical principles even if they violate the law. C. Peer pressure is used to enforce group norms. D. Self-interest motivates behavior to meet one's own needs.

Business

A major input to an MRP system is:

A) the master schedule. B) the capacity plan. C) shop-floor activity planning and control. D) the production plan. E) none of the above

Business