Which of the Following Actions Will Best Enable a Company

question 25

Multiple Choice

Which of the following actions will best enable a company to raise additional equity capital?

• A) Declare a stock split.
• B) Begin an open-market purchase dividend reinvestment plan.
• C) Initiate a stock repurchase program.
• D) Begin a new-stock dividend reinvestment plan.
• E) Refund long-term debt with lower cost short-term debt.

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Definitions:

Predatory Pricing

A pricing strategy where a product is sold at a very low price with the intent to drive competitors out of the market.

Charging

In financial contexts, charging refers to the act of imposing a fee for goods or services; in technology, it pertains to the process of replenishing a device's battery power.

Product Line

A group of related products marketed by the same company under a single brand name.