Assume an investor owns 10 shares of the firm's stock and wishes to undo the firm's proposed alternate dividend plan. 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 recreate the original dividend plan of the firm.
Correct Answer:
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