Which of the Following Actions Will Best Enable a Company

question 68

Multiple Choice

Which of the following actions will best enable a company to raise additional equity capital,other things held constant?

• A) Refund long-term debt with lower cost short-term debt.
• B) Declare a stock split.
• C) Begin an open-market purchase dividend reinvestment plan.
• D) Initiate a stock repurchase program.
• E) Begin a new-stock dividend reinvestment plan.

---

Definitions:

Asset Turnover

A metric that evaluates how effectively a company utilizes its assets to produce sales income.

Intangible Asset

An asset that lacks physical substance but provides economic benefits to a business, such as trademarks or patents.

Commercial Substance

A consideration in accounting that a transaction has significantly changed the economic circumstances of the participants.

Gain or Loss

The difference between the sale price of an asset and its original purchase price, indicating the financial outcome of a transaction.