Which One of These Can a Shareholder Use to Alter

question 34

Multiple Choice

Which one of these can a shareholder use to alter the dividend policy of a firm?

• A)Homemade dividend
• B)Stock split
• C)Reverse stock split
• D)Stock repurchase
• E)Stock dividend

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Definitions:

Consumer Surplus

The divergence between the price consumers are willing to pay and what they really spend on a good or service.

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.