Which of the Following Does NOT Apply to a Dividend

question 105

Multiple Choice

Which of the following does NOT apply to a dividend reinvestment plan?

• A) A dividend reinvestment plan forms additional equity financing for the company.
• B) For a dividend reinvestment scheme the company typically bears the associated transaction costs.
• C) Companies have encouraged shareholders to use dividend reinvestment plans.
• D) Shareholders have the chance of purchasing additional shares through a dividend reinvestment plan.

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Definitions:

Minimum Period

The shortest legally or contractually allowable duration for a particular action, employment, or agreement.

Unfair Labour Practice

Actions by employers or unions that violate employees' rights and labor laws, often related to collective bargaining or workplace discrimination.

Certified

Officially recognized or attested, often implying that a person or object has met certain standards or qualifications.

Union Wages

The set rate of pay negotiated for workers by a collective bargaining agreement between an employer and a labor union.