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.

Question

Quizplus · Accepted Answer

Beginning a new-stock dividend reinvestment plan allows a company to raise additional equity capital by issuing new shares to investors who opt to reinvest their dividends into new shares of the company's stock, rather than receiving the dividends in cash. This process increases the company's equity capital as it receives new funds from shareholders.

Which of the Following Actions Will Best Enable a Company