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

Question

Quizplus · Accepted Answer

A stock split is the most suitable option for Revol-Tech under the given circumstances. It acknowledges shareholder loyalty without requiring the company to expend cash, which it needs for growth. Additionally, a stock split can make the stock price more attractive if it's currently at the upper end of its preferred trading range, potentially making shares more accessible to a broader range of investors.

Revol-Tech Is a Technology Firm with Excellent Growth Prospects