The Helga's Health board of directors feels the stock price for its Norwegian herbal supplements company has become too high and is pricing out potential investors. What action should the board take?
A) lower the par value of its stock
B) increase dividends to lower the market value
C) issue a 2-for-1 stock split
D) convert the stock to bonds
E) recalculate the stock's book value
Answer: C
Explanation: C) In a stock split, a company divides its existing shares into multiple shares. The number of shares increases, but the total value of the shares remains the same, thus lowering the share price.
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A. only the amount of money in the economy. B. only the lending policy of financial intermediaries. C. the entire financial system. D. how financial securities are traded and no other part of the financial system.
The sales manager should not change the compensation plan, even if conditions in the marketplace warrant a change
Indicate whether the statement is true or false
The same information may be included in the letter of transmittal, executive summary, and introduction of a formal business report
Indicate whether the statement is true or false
Paying for a purchase is which type of flow?
a. Customer b. Information c. Material d. Cash