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Bilbao Vizgaggins Owns Shares in a Company That Does Not

Question 75

Multiple Choice

Bilbao Vizgaggins owns shares in a company that does not pay dividends.Unfortunately,Vizgaggins requires a $100,000 dividend this period.If Vizgaggins owns 10,000 shares in the company and they are worth $200 per share,what can he do to produce the effect of the required dividend (ignore all tax effects) ?


A) sell 500 shares of his stock
B) sell 5000 shares of his stock
C) buy 500 more shares of the stock
D) there is nothing that he can do

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