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On another sheet of paper, place the vocabulary term in its correct historical period(s). Some terms will appear under more than one period.
gold standard _____
a. Colonial: 1607–1776 b. Pre-Civil War: 1789–1861 c. Civil War–Pre-Depression: 1861–1929 d. Depression: 1929–1939 e. World War II–FIRREA: 1940–1989 f. 1989–present
A firm considers initiating an aggressive dividend reinvestment plan (DRIP) in which it allows its investors to use dividends to buy shares at a discount of 40% from current market value. The firm’s financial manager argues that the policy will benefit shareholders by giving them the opportunity to buy additional shares at a deep discount and will benefit the firm by providing a source of cash. Is the manager correct?