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

question 79

Multiple Choice

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

• A)the perfect foresight model.
• B)MM Proposition I.
• C)capital structure irrelevancy.
• D)homemade leverage.
• E)homemade dividends.

---

Definitions:

\(2y^5\)

A mathematical expression, specifically a monomial, indicating the product of the constant 2 and the variable \(y\) raised to the fifth power.

Equation

A mathematical statement that asserts the equivalence of two expressions.

Solution

In the context of mathematics, a solution is an answer to a problem or equation.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and a single variable, and it graphs as a straight line.