There are two types of dividend reinvestment plans. Under one type of plan, the firm uses the cash that would have been paid as dividends to buy stock on the open market. Under the other type, the company issues new stock, keeps the cash that would have been paid out, and in effect sells new stock to those investors who choose to reinvest their dividends.
Answer the following statement true (T) or false (F)
True
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Relevance and reliability are two primary qualities that make accounting information useful for decision making
Indicate whether the statement is true or false
A financing statement is effective for a period of seven (7) years from the date of filing.
Answer the following statement true (T) or false (F)
Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coca-Cola pursuing?
A. product reorientation B. product development C. market penetration D. market development E. diversification
Michael has borrowed $100,000 from his bank. If Michael fails to make payments on his loan, the bank can sue Michael. However, because Michael has no income and owns no property, if the bank sues Michael, the bank will never collect. Michael is considered to be ________.
A. liquidated B. judgment-proof C. collateralized D. fully monetarized