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If a Firm Wants to Decrease the Per-Share Price of Its

Question 3

Multiple Choice

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)

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