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Anna and Howard Both Own 100 Shares of Photo-Hut

Question 29

Multiple Choice

Anna and Howard both own 100 shares of Photo-Hut.Anna buys stocks for income for current consumption,Howard buys stocks for their future growth.This year the firm has paid out all its profits to its stockholders.We can expect that


A) Anna and Howard will both spend the income.
B) Howard will spend the income,while Anna will use the money to buy more stock in the firm.
C) Howard will sell the stock since it is not reinvesting its profits.
D) Anna will spend the income,while Howard will use the money to buy more stock in the firm.

Correct Answer:

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