GoodSignal Co. is currently trading for $10 with 1 million shares outstanding. Which of the following actions would be the most credible signal that management believes that the long-term prospects for a company have improved?
A) Pay a $0.20 extra dividend in addition to the company's $0.20 regular quarterly dividend
B) Increase the company's regular quarterly dividend from $0.20 to $0.40
C) Initiate an open-market stock repurchase of 2 percent of the company's stock
D) Pay a $0.20 special dividend by selling a major fixed asset
Correct Answer:
Verified
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