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Commerce · Q175

Business Finance

Graduate and Post Graduate · Commerce · question 175

Q175

Under dividend reinvestment plan (DRIP):

A.
The dividends are not passed on to investors in the form of money
B.
It allows shareholders to automatically reinvest dividend payments in some scheme or additional shares of the firm's stock
C.
Both A and B
Answer
D.
It is a mandatory plan where shareholders are automatically reinvesting dividend payments in additional shares of the firm's stock at a reduced price

Answer: Option C

Solution

Answer: Option C
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