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:

Annually

Annually means once every year.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns, often involving the purchase of securities.

Compound Annual Rate

The rate at which an investment would have grown annually if it had compounded at a steady rate.

Dividends

Payments made by a corporation to its shareholder members, typically from profits.