Question 21 (4 points) Listen A reverse stock split is best described by: 1) A reduction in the stock price and the number of shares outstanding 2) The sale of a firm's new shares in the open capital market 3) The increase in the firm's shares outstanding with no effect on shareholders' equity 4) The decrease in the firm's shares outstanding with no effect on shareholders' equity 12 15 Question 22 (4 points) 18 Listen 21 The following refers to the notion that a shareholder can establish an alternative dividend policy and undo that of a firm by reinvesting paid dividends or selling stocks. 24 1) Repurchase arrangement 2) Homemade dividend policy 3) Recapitalization 4) Offsetting leverage