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What are automatic dividend reinvestment plans designed to do?

kitkat867

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What are automatic dividend reinvestment plans designed to do?

What are automatic dividend reinvestment plans designed to do?

▸

aid shareholders in creating their preferred dividend policy

▸

raise new equity capital for the firm through market repurchases

▸

eliminate excess illiquid shares from the open market

▸

help investors avoid paying taxes on dividends

Textbook

Financial Management: Theory and Practice

Financial Management: Theory and Practice

Edition: 4^th

Authors: Brigham, Ehrhardt, Gessaroli, Nason

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kitkat867 Author

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Thanks

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Thanks for your help!!

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