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.

Comprehend the federal budget process including the President's budget submission, budget resolutions, and continuing resolutions.

Recognize the fiscal implications of budget deficits and surpluses on the economy.

Understand the role of the Economic Report of the President and the Council of Economic Advisers in fiscal policy formulation.

Recognize the impact of federal budget choices on economic indicators like aggregate demand and national saving.

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Definitions:

Passive Engagement

The act of involvement in an activity without active participation, often referring to the manner in which people consume media or interact with digital content.

Familiar Surroundings

Environments or settings that are well known and comfortable to an individual, often providing a sense of security.

Emotional Engagement

The investment of emotion and affect in activities, relationships, or learning, which can influence motivation and outcomes.

Information Processing System

A system, either computational or biological, that processes data or information following a set of procedures or algorithms.