Which of the Following Actions Will Best Enable a Company

question 12

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:

Take Action

The process of behaving or conducting oneself in a way that initiates change or produces results.

Results

The outcomes or outputs achieved from a specific process, activity, or investment, which are measured against predetermined objectives or goals.

Plan Obsessively

The approach of meticulously detailing every aspect of a project or venture to ensure its success.

Objective Thinking

A way of reasoning and making decisions based on facts and evidence, without influence from personal feelings or biases.