Question

Suppose BREX Corp. believes its recent stock price increase has made the price of the stock...

Suppose BREX Corp. believes its recent stock price increase has made the price of

the stock too expensive for the average investor. To remedy this situation, BREX

could

b. complete a reverse stock split

d. execute a stock repurchase

c. pay a regular cash dividend

a. pays a liquidating dividend

e. complete a stock split
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Answer #1

Suppose BREX Corp. believes that its recent stock price increase has made the price of the stock too expensive for the average investor then remedy this situation, BREX could e. complete a stock split.

Note: Stock split will increase the no. of shares, that are being traded in market. Further, it will also reduce the per share value of each stocks (i.e. Total market value of shares / Total no. of shares post stock split) which will make the stock affordable for the average investor.

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