A dividend reinvestment plan enables stockholders to
A. reinvest the dividends in money market instruments which are risk free.
B. reinvest all dividends in the firm with no accompanying increase in equity.
C. acquire additional dividends through redemption of stock.
D. acquire shares at little or no transaction costs.
Answer:D
A dividend reinvestment plan enables stockholders to
A. reinvest the dividends in money market instruments which are risk free. B. reinvest all dividends in the firm with no accompanying increase in equity. C. acquire additional dividends through redemption of stock. D. acquire shares at little or no transaction costs.