Revol-Tech is a technology firm with excellent growth prospects. The firm wishes to do something to acknowledge

Revol-Tech is a technology firm with excellent growth prospects. The firm wishes to do something to acknowledge the loyalty of the shareholders but needs all of its available cash to fund the firm's rapid growth. The market price of the stock is currently trading at the upper end of its preferred trading range. The firm is most apt to consider which one of the following in this situation?    A.  liquidating dividend B.  stock split C.  reverse stock split D.  small stock dividend E.  special cash dividend Refer to section 17.8

47.

Which two of the following are the best justifications for a reverse stock split? I. combine a reverse stock split with a stock repurchase to enable a firm to go dark II. increase the respectability of the stock III. avoid delisting IV. reduce transaction costs for shareholders    A.  I and II only B.  I and III only C.  II and III only D.  II and IV only E.  III and IV only Refer to section 17.8

48.

A stock split:    A.  increases the total value of the common stock account. B.  decreases the value of the retained earnings account. C.  increases the par value per share. D.  increases the value of the capital in excess of par account. E.  decreases the market value per share. Refer to section 17.8

49.

Stock splits can be used to:    A.  adjust the market price of a stock such that it falls within a preferred trading range. B.  decrease the excess cash held by a firm thereby lowering agency costs. C.  increase both the number of shares outstanding and the market price per share. D.  increase the total equity of a firm. E.  adjust the debt-equity ratio. Refer to section 17.8