Which of the Following Statements Is Correct

question 70

Multiple Choice

Which of the following statements is correct?

• A)One disadvantage of dividend reinvestment plans is that they increase transaction 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)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:

Class Intervals

The range of values into which data points in a dataset are grouped for the purpose of creating a frequency distribution.

Frequency Distribution

A statistical representation showing the number of times each value appears in a dataset, often visualized as a table or graph.

National Counseling Exam

A certification examination for counselors in the United States, assessing knowledge and skills required for effective counseling practice.

Range

The difference between the lowest and highest values in a set of data, indicating dispersion or variability.