Which of the following statements is correct?
A. One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes on the dividends credited to their account.
B. Stock repurchases can be used by a firm that wants to increase its debt ratio.
C. Stock repurchases make sense if a company expects to have a lot of profitable new projects to fund over the next few years, provided investors are aware of these investment opportunities.
D. One advantage of an open market dividend reinvestment plan is that it provides new equity capital and increases the shares outstanding.
E. One disadvantage of dividend reinvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company.
Answer: B
You might also like to view...
Kiting involves the overstatement of a bank account by transferring funds at the end of the year to another bank account and failing to record the disbursement
a. True b. False Indicate whether the statement is true or false
Using the information below, compute the raw materials inventory turnover: Raw materials used$121,600 Beginning raw materials inventory 18,000 Ending raw materials inventory 20,200
A. 6.37. B. 6.02. C. 54.0. D. 60.6. E. 6.76.
After Carson opened up his new sports bar/restaurant, he determined that students from the nearby college campus will provide him with the best opportunity to maximize sales, so he is concentrating his marketing efforts on this group which will be his
A. marketing segment. B. target sector. C. target market. D. primary market. E. primary segment.
Which act requires an employer to negotiate in good faith with the union's representatives over conditions of employment?
A. Wagner Act B. NLRB Act C. Taft-Hartley Act D. Occupational Health and Safety Act