Adividendreinvestmentplanenablesstockholdersto
A. reinvestthedividendsinmoneymarketinstrumentswhichareriskfree.
B. reinvestalldividendsinthefirmwithnoaccompanyingincreaseinequity.
C. acquireadditionaldividendsthroughredemptionofstock.
D. acquiresharesatlittleornotransactioncosts.
Answer:D
Adividendreinvestmentplanenablesstockholdersto
A. reinvestthedividendsinmoneymarketinstrumentswhichareriskfree. B. reinvestalldividendsinthefirmwithnoaccompanyingincreaseinequity. C. acquireadditionaldividendsthroughredemptionofstock. D. acquiresharesatlittleornotransactioncosts.