Which of the Following Statements Is CORRECT

question 12

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 investment 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:

Self-efficacy

An individual's belief in their own ability to succeed or accomplish a task.

Aggression

A behavior intended to harm or injure others, either physically or psychologically.

Defensive Self-esteem

A form of self-esteem that is fragile and highly sensitive to perceived criticism or failure, often leading to defensive behaviors.

Inflated Self-esteem

An exaggeratedly high self-regard that may not accurately reflect reality and can manifest in overconfidence or entitlement.