All of the following are rationales given for a stock dividend or split EXCEPT
A) the price will not fall proportionately to the share increase.
B) an optimum price range does not exist.
C) there is positive informational content associated with the announcement.
D) conservation of corporate cash.

Question

Quizplus · Accepted Answer

An optimum price range is often cited as a reason for a stock dividend or split, as companies aim to keep their share prices within a certain range to make the stock more attractive to a broader range of investors. The other options (A, C, D) are common rationales for stock dividends or splits.

All of the Following Are Rationales Given for a Stock