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Nu Tech Is a Technology Firm with Good Growth Prospects

Question 49

Multiple Choice

Nu Tech is a technology firm with good growth prospects.The firm wishes to do something to acknowledge the loyalty of its shareholders but needs all its available cash to fund its rapid growth.The market price of its stock is currently trading in the upper end of its preferred trading range.The firm could consider:


A) a liquidating dividend.
B) an extra cash dividend.
C) a reverse stock split.
D) a stock dividend.
E) a cash distribution.

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