Which One of the Following Decreases the Effectiveness of a Homemade

question 300

Multiple Choice

Which one of the following decreases the effectiveness of a homemade dividend?

• A) A dividend reinvestment program.
• B) The ownership of a large number of shares.
• C) A prohibition against utilizing any principal for current income needs.
• D) The ability to purchase shares at a discounted price by reinvesting dividends.
• E) Lack of transaction costs on purchases and sales of shares of stock.