What is a dividend reinvestment plan explain the advantages, Finance Basics

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What is a dividend reinvestment plan explain the advantages

1. What is a dividend reinvestment plan? Explain the advantages of a dividend reinvestment plan to the firm and to shareholders.

2. Why do many firms choose to issue stock dividends? What is the value of a stock dividend to a shareholder?

3. What are the tax limitations on the practice of share repurchases as a regular dividend policy?

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Finance Basics: What is a dividend reinvestment plan explain the advantages

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