A dividend reinvestment plan (DRIP):

A. offers fixed dividends to the firm's stockholders.
B. requires payment of a constant percentage of the firm's earnings as annual cash dividends.
C. enables stockholders to automatically reinvest cash dividends they receive in the stocks of the dividend-paying firm.
D. pays stockholders tax-free cash dividends.
E. pays extra cash dividends in years the firm has few acceptable investment opportunities.


Answer: C

Business

You might also like to view...

What must an auditor do in an audit?

a. Consider how the economic activity is portrayed in the financial statements. b. Force management to make operational decisions that will improve the company's financial performance. c. Disregard independence in order to find the underlying truth of the evidence. d. Establish new criteria by which financial statements may be compared.

Business

The journal entry to record the sale or disposition of a depreciable plant asset always includes

A. recognition of a gain or loss B. a debit to the accumulated depreciation account for the related accumulated depreciation C. a debit to the asset account for the book value of the asset

Business

Which of the following is an optimization approach that can be used to create aggregate plans, where the total production cost is represented by a single quadratic cost function, which is minimized using calculus?

A. linear decision rule B. linear programming C. simulation D. management coefficients model

Business

Brian, the owner of "Brian's Cheese House" learned that his competitor, Bryan of "Bryan's House of Cheese," just filed an application to register a logo that looks remarkably similar to Brian's logo. In response, Brian can ________.

A. do nothing B. submit to the PTO an opposition to the proposed registration of Bryan's mark C. file suit in the U.S. District Court for the District of Columbia D. file a complaint with the Federal Trade Commission

Business