The Use of Homemade Dividends Allows Shareholders to Change The

question 54

Multiple Choice

The use of homemade dividends allows shareholders to change the:

• A)return pattern of the firm by leveraging their position like the firm.
• B)cash dividend payout received by selling off shares to receive current dividends or
• Purchasing added shares with the dividends, as desired.
• C)value of the company by sending dividend requirement letters to the home office of the
• Corporation.
• D)Both A and C.
• E)Both B and C.

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Definitions:

Demand Schedule

A table or graph showing the quantity of a good that consumers are willing to purchase at various prices.

Supply Schedule

A table or graph that shows the quantity of goods that producers are willing and able to supply at various prices over a specified period.

Equilibrium Price

The market price at which the quantity of a good supplied is equal to the quantity demanded.

Equilibrium Quantity

The measure of goods or services being supplied and demanded at a price point where equilibrium occurs.