The Ability of Shareholders to Undo the Dividend Policy of the Firm

question 26

Multiple Choice

The ability of shareholders to undo the dividend policy of the firm and create an alternative dividend payment policy via reinvesting dividends or selling shares of stock is called (a) :

• A) MM Proposition I.
• B) capital structure irrelevancy.
• C) homemade leverage.
• D) homemade dividends.

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Definitions:

Satellites

Man-made objects placed in orbit around the Earth or other celestial bodies, used for communication, navigation, or observation.

Wi-Fi

A wireless networking technology that allows computers, smartphones, and other devices to communicate over a short distance via radio waves without requiring physical connections.

Disadvantages

The negative aspects or drawbacks associated with a situation, process, or decision.

Project Fi

A telecommunications service by Google designed to provide users with wireless internet and mobile phone services.