Multiple Choice
A dividend reinvestment plan (DRIP) :
A) offers fixed dividends to the firm's stockholders.
B) requires payment of a constant percentage of the firm's earnings as annual cash dividends.
C) enables stockholders to automatically reinvest cash dividends they receive in the stocks of the dividend-paying firm.
D) pays stockholders tax-free cash dividends.
E) pays extra cash dividends in years the firm has few acceptable investment opportunities.
Correct Answer:
Verified
Correct Answer:
Verified
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