Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

• A)One disadvantage of dividend reinvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company.
• B)One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes on the dividends credited to their account.
• C)Stock repurchases can be used by a firm that wants to increase its debt ratio.
• D)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.
• E)One advantage of an open market dividend reinvestment plan is that it provides new equity capital and increases the shares outstanding.

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Definitions:

Birth Process

The series of physiological events by which a fetus is expelled from the womb and enters the external world as a newborn

Third Stage

In the context of childbirth, the third stage of labor involves the delivery of the placenta after the baby is born. In other contexts, it can refer to a specific phase in a process or development.

Birth Process

The physiological and medical events involved in childbirth, from the onset of labor through delivery of the baby and placenta.

Second Stage

Refers to a subsequent phase or step in a process or sequence, often implying development or progression from an initial stage.