Which of the following statements is correct?
A. An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers.
B. Stock repurchases tend to reduce financial leverage.
C. If a company declares a 2-for-1 stock split, its stock price should roughly double.
D. One advantage of adopting the residual dividend policy is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory.
E. If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.
Answer: E
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When two or more individuals engage in an enterprise as co-owners, the organization is known as a
a. single proprietorship. b. corporation. c. partnership. d. closed corporation.
The search qualities of a service are the characteristics the buyer can evaluate before purchase
Indicate whether the statement is true or false
Most demand for business-to-business products is ________
A) derived, inelastic, fluctuating, and joint B) derived, elastic, fixed, and joint C) derived, inelastic, static, and dependent on the macroenvironment D) independent of all consumer market influences E) competitive, derived, fluctuating, and elastic
country. Finally, maximizing profits above all else could lead a company to act directly counter to the needs and interests of consumers, hurting them even though actions may be legal.
What will be an ideal response?