If a firm wants to decrease the per-share price of its common stock, which of the following actions should it take? Assume everything else remains constant.
A. Initiate a 1-for-3 reverse stock split
B. Initiate a 2-for-1 stock split
C. Increase the per share dividend that it pays
D. Repurchase some of its stock, and use the proceeds to pay off long-term bonds
E. Issue a substantial amount of new bonds to finance capital budgeting projects that have negative net present values (NPVs)
Answer: B
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