Which of the following is not true regarding a reverse stock split?
a. Firms reduce the number of outstanding shares by increasing the par value of the stock.
b. Firms reduce the number of outstanding shares by canceling outstanding shares.
c. A reverse stock split usually increases the market value per share in inverse proportion to the reverse split.
d. Managers and governing boards might use reverse stock splits to keep the market price per share within some target trading range.
e. Analysts use reverse stock splits to signal that the market price per share will go up disproportionately.
E
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The advantages of financial leverage accrue primarily to
A) management. B) stockholders. C) the government. D) creditors.
The _____ of a long-lived asset is the cost of a series of future services
a. present value of future cash flows b. acquisition cost c. current fair market value d. liquidation value e. current cost
. According to the authors, what is the precursor to action?
a. a business process b. the right mindset c. a business plan d. the acquisition of resources
Per capita distribution requires distribution according to degree of relationship
Indicate whether the statement is true or false