Newtown stock is currently trading at $64 a share.The firm feels that its primary clientele of small retail investors can afford to spend between $3,000 and $3,500 to purchase a round lot of 100 shares.If excess funds are limited,the firm should consider a:

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A stock split would decrease the price per share, making it more affordable for small retail investors to purchase a round lot of 100 shares. This would also increase the liquidity of the stock and potentially attract more investors. A special dividend, a liquidating dividend, and a reverse stock split would not address the issue of the stock being too expensive for the primary clientele. A Dutch auction may not be necessary if the firm already knows the price range that their primary clientele can afford.

Newtown Stock Is Currently Trading at $64 a Share