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Assume an Investor Owns 10 Shares of the fiRm's Stock

Question 351

Multiple Choice

Assume an investor owns 10 shares of the firm's stock and wishes to create the alternate dividend
plan without the aid of the firm. Is this possible, and if so, how?


A) Yes, the investor should create a homemade dividend by selling $200 worth of stock.
B) Yes, the investor should create a homemade dividend by selling $100 worth of stock.
C) Yes, the investor should create a homemade dividend by buying $200 worth of stock.
D) Yes, the investor should create a homemade dividend by buying $100 worth of stock.
E) No, it is not possible to create the alternate dividend plan.

Correct Answer:

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