Which of the Following Statements Is Most Correct

question 13

Multiple Choice

Which of the following statements is most correct?

• A) In general, stock repurchases are taxed the same way as dividends.
• B) One nice feature of dividend reinvestment plans is that they enable investors to reduce the taxes paid on their dividends.
• C) On average, companies send a negative signal to the marketplace when they announce an increase in their dividend.
• D) If a company is interested in issuing new equity capital, a new stock dividend reinvestment plan probably makes more sense than an open market dividend reinvestment plan.
• E) Statements b and d are correct.

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Definitions:

Profit Margin

a financial metric used to assess a company's profitability by dividing net income by net sales.

Specialty Products

Goods or services that are perceived as unique or high-value by consumers, often associated with specific buying criteria and loyalty.

Antiques

Items of high value due to their age, rarity, condition, utility, or personal emotional connection, often considered collectible or desirable for their historical significance.

Product Portfolio

A product portfolio is the collection of all products and services offered by a company, categorized and managed to achieve business objectives.