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How Can the Investor Manufacture 'Homemade Dividends' in Miller and Modigliani's

Question 38

Multiple Choice

How can the investor manufacture 'homemade dividends' in Miller and Modigliani's perfect world?


A) By selling a proportion of shares held, hoping that a fair price would be obtained
B) By selling a proportion of shares held, confident that a fair price would be obtained
C) By selling a proportion of shares held, accepting that the price obtained would be low
D) By selling a proportion of shares held, accepting that the price obtained would be below par

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