Which of the following actions will enable a company to raise additional equity capital (that is, which of the following will raise the total book value of equity)?
A) The establishment of a new-stock dividend reinvestment plan.
B) A stock split.
C) The establishment of an open-market purchase dividend reinvestment plan.
D) A stock repurchase.
E) Answers a and d are correct.

Question

Quizplus · Accepted Answer

Establishing a new-stock dividend reinvestment plan allows shareholders to reinvest dividends into new shares, increasing the company's equity capital.

Which of the Following Actions Will Enable a Company to Raise