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Share Prices of Emperor Oil Ltd

Question 26

Multiple Choice

Share prices of Emperor Oil Ltd. have been stagnant for the past five years at around $50.00. The company is in the final stretch of drilling and testing old oil fields located in northern Ontario using the latest tracking technology. Management is expects excellent results within six months but so far the market is unaware of these developments. Which of the following activities would be inequitable to current shareholders?


A) A 10% increase in the dividend.
B) A 10% share repurchase program.
C) A 10% stock dividend program.
D) A 1 for 10 stock split program.
E) A 10% dividend smoothing program.

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