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:

Alcohol-Use Disorder

A health disorder marked by the inability to cease or regulate drinking despite negative impacts on social, work, or physical well-being.

Disulfiram

A medication used to support the treatment of chronic alcoholism by producing an acute sensitivity to ethanol (drinking alcohol).

Recovering Alcoholic

An individual who has previously struggled with alcohol addiction but is currently abstaining from alcohol to manage their addiction and improve their health.

Substance-Use Disorders

A complex condition where there is uncontrolled use of a substance despite harmful consequence.