The firm has consistent long-term earnings but is currently experiencing a spike in short-term profitability. It pays a $0.50 annual dividend and anticipates a return to sustainable profit levels soon. Possible actions include increasing the dividend, announcing a special dividend, initiating a reinvestment plan, or splitting shares.

1. A firm generates stable earnings over the long term but has recently enjoyed surging snort term
profitability. This firm pays a modest $0.50 per share annual dividend and expects profitability to
return to its sustainable level over the next few months. This firm will most likely: Increase its
annual dividend payment Announce a special dividend. Initiate a dividend reinvestment plan
Split its shares