Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

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

Understand the concept and implications of demographic transition.

Differentiate between developed and developing countries based on demographic indicators.

Analyze the relationship between literacy rates and infant mortality.

Compare crude birth and death rates across various countries.

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Definitions:

Compensation Schedule

A structured plan outlining the wages, salaries, benefits, and other forms of payment provided to employees for their work.

Target Based Pay

A compensation model where an employee's earnings are directly linked to achieving specific performance targets.

Environmental Awareness

The recognition and understanding of environmental issues and the importance of taking action to protect the environment.

Transfer Price

The rate at which merchandise, services, or intellectual assets are transacted among branches of the same organization.