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.

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are differentiated from one another but can act as substitutes, allowing for some control over pricing.

Shift To The Left

A term used in economics to describe a decrease in supply or demand, represented graphically by a leftward shift of the supply or demand curve.

Monopolistically Competitive

An economic setup in which a variety of businesses market goods that are comparable yet distinct, enabling them to have some market control and differentiate their offerings.

Guaranteed A Profit

An assurance that an investment or business endeavor will yield a positive return or profit.