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:

Patents

Legal documents granted by governments that give inventors exclusive rights to their inventions for a certain period of time, preventing others from making, selling, or using the invention without permission.

Trademarks

Symbols, names, or phrases legally registered or established by use as representing a company or product.

Legal Protections

Measures and policies designed to safeguard individuals, businesses, and intellectual property rights against infringement or harm.

Expected-Rate-of-Return Curve

A graphical representation showing the expected returns on investment for different levels of risk.