Advantages of dividend reinvestment plans to the corporation
Not what you're looking for?
What advantages to the corporation and the stockholder do dividend reinvestment plans offer?
Purchase this Solution
Solution Summary
This post evaluates the dividend reinvestment policies in terms of their value to the investors. The advantages and disadvantages of this management action is evaluated under perfect markets as well as in imperfect markets.
Solution Preview
Since, dividends have a tax disadvantage i.e. marginal rate of tax on dividends is much higher than capital gain tax, the dividend reinvestment plan will help the stockholders in reducing ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.