BUS 225 DAYONE LL
BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 18, Problem 11DQ
Summary Introduction

To explain:The advantages provided by dividend reinvestment plans to the company and shareholders.

Introduction:

Dividend Reinvestment Plan (DRIP):

A program offered by the underlying company that lets its shareholders reinvest their cash dividend into additional shares is termed as DRIP. The quarterly dividend of investors is directly reinvested in that company’s underlying equity shares.

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A6) Why is private equity a possible solution for raising equity (for non-issuable companies)?
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What are dividend reinvestment plans?
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