Which Action Will Best Enable a Company to Raise Additional

question 27

Multiple Choice

Which action 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.

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Definitions:

Contest

A promotional strategy involving a competition in which participants perform tasks to win prizes or recognition.

Analytical Thinking

The ability to solve problems quickly and effectively by evaluating information deeply and accurately.

Two-for-One

A promotional offer where customers receive two items for the price of one, commonly used to attract buyers and increase sales volume.

Price Reductions

A strategy where the selling price of a product or service is lowered to increase demand or compete more effectively.