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mktrujillo mktrujillo
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7 months ago
A dividend reinvestment plan (DRIP) differs from a stock dividend in which way?

▸ DRIPs allow shareholders to buy additional shares at a discount, whereas with a stock dividend, shareholders receive no discount.

▸ DRIPs allow investors to use cash dividends to buy new shares, while a stock dividend is a dividend paid in additional shares.

▸ Stock dividends allow shareholders to purchase additional shares with their dividends at a special discount, whereas a DRIP allows shareholders to purchase shares at the market price.

▸ Stock dividends are voluntary, whereas DRIPs are mandatory.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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brassgodbrassgod
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7 months ago
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mktrujillo Author
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7 months ago
You make an excellent tutor!
ky
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Yesterday
this is exactly what I needed
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2 hours ago
Thank you, thank you, thank you!
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