Good Signal 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 has 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) Initiate a Dutch auction tender offer stock repurchase for 2 percent of the company's stock.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.