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.

Question

Quizplus · Accepted Answer

A new-stock dividend reinvestment plan allows shareholders to reinvest dividends by purchasing additional shares directly from the company, thus raising additional equity capital.

Which of the Following Actions Will Best Enable a Company