Which One of the Following Refers to the Ability of Shareholders

question 11

Multiple Choice

Which one of the following refers to the ability of shareholders to undo a company's dividend policy and create an alternative dividend policy by reinvesting dividends or selling shares of stock?

• A) Perfect foresight model
• B) Personalization
• C) Recapitalization
• D) Offsetting leverage
• E) Homemade dividend

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Definitions:

Capital Lease

A lease agreement that grants a lessee the benefits and risks of ownership of the asset, typically recognized on the balance sheet.

Balance Sheet

A “snapshot” of an organization’s financial position at a given moment.