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Which of the following statements regarding distribution policy is CORRECT? One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes

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Which of the following statements regarding distribution policy is CORRECT? One advantage of dividend reinvestment plans is that they enable investors to postpone paying taxes on the dividends credited to their account, One disadvantage of dividend reinvestment plans is that they increase transactions costs for investors who want to increase their ownership in the company Stock repurchases make sense it a company expects to have a lot of profitable new projects to fund over the next few years provided investors are aware of these investment opportunities Stock repurchases can be used by a firm that wants to increase its debt ratio

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