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.

---

Definitions:

White House Tapes

Audio recordings of conversations and meetings in the White House, famously associated with President Nixon's administration and the Watergate scandal.

Pentagon Papers

Informal name for the Defense Department’s secret history of the Vietnam conflict; leaked to the press by former official Daniel Ellsberg and published in the New York Times in 1971.

Freedom-Of-The-Press

The right to publish and disseminate information, opinions, and ideas without government restriction or censorship.

Vietnam War

A prolonged conflict (1955-1975) between Communist forces in North Vietnam and non-Communist forces in South Vietnam, involving extensive U.S. military intervention.