Which of the Following Statements Is NOT a Possible Benefit

question 6

Multiple Choice

Which of the following statements is NOT a possible benefit of dividend reinvestment programs (DRPs) ?

• A) Owners of shares that pay dividends do not have to pay brokerage fees if they want to reinvest the proceeds.
• B) A company will sell new shares normally at a discount of 2.5 - 10 per cent off the market price.
• C) DRPs allow a company to preserve its cash flows and receive a low cost source of capital.
• D) Shareholders who choose not to participate in the DRP will find that their proportional ownership is eroded over time.

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Definitions:

Pragmatism

A philosophical approach that assesses the truth of meaning of theories or beliefs in terms of the success of their practical application.

Teen Conflict

Disagreements or disputes that arise among adolescents, often due to varying opinions, desires, or developmental changes.

Age Cohorts

Groups of individuals who share similar birth years and, consequently, are likely to experience similar life stages, social conditions, and historical events at around the same time, affecting their views and behaviors.

Rebellion

The act or process of resisting authority, control, or tradition, often aiming to instigate change or to establish a new order.