Generally, management undertakes a bonus share issue to _____________.

Select one:

a.

reduce the administrative costs associated with investor relations

b.

send a signal to investors that the company is expected to perform poorly

c.

increase the liquidity of shares by increasing the number of shares available

d.

increase the liquidity of shares by decreasing the number of shares available

Clear my choice

Question 9

Given only information on beta, which of the following stocks is considered the least risky?

Select one:

a.

stock A beta = 1.37.

b.

stock B beta = 2.16.

c.

stock C beta = 0.56.

d.

stock D beta = 0.85.