Which of the following actions will best enable a company to raise additional equity capital, other things held constant?
A. Refund long-term debt with lower cost short-term debt.
B. Declare a stock split.
C. Begin an open-market purchase dividend reinvestment plan.
D. Initiate a stock repurchase program.
E. Begin a new-stock dividend reinvestment plan.
Answer: E
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A law firm collected $3200 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this collection of cash?
A. Debit Accounts Receivable, $3200; credit Unearned Legal Fees Revenue, $3200. B. Debit Accounts Receivable, $3200; credit Legal Fees Revenue, $3200. C. Debit Cash, $3200; credit Accounts Receivable, $3200. D. Debit Legal Fees Revenue, $3200; credit Accounts Receivable, $3200. E. Debit Cash, $3200; credit Unearned Legal Fees Revenue, $3200.
Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation?
A) The declaration of dividends reduces the amount of the corporation's taxable income. B) Interest accrues; whereas, dividends do not accrue. C) The payment of bond interest is a contractual requirement. D) The declaration of dividends is at the discretion of the board of directors.
The number of dummy variables must equal 1 less than the number of categories of the qualitative variable
Indicate whether the statement is true or false
Most charges made against auditors under common law are criminal.
Answer the following statement true (T) or false (F)