Bilbao Vizgaggins Owns Shares in a Company That Does Not

question 41

Multiple Choice

Bilbao Vizgaggins owns shares in a company that does not pay dividends.Unfortunately,Vizgaggins requires a $100,000 dividend this period.If Vizgaggins owns 10,000 shares in the company and they are worth $200 per share,what can he do to produce the effect of the required dividend (ignore all tax effects) ?

• A) sell 500 shares of his stock
• B) sell 5000 shares of his stock
• C) buy 500 more shares of the stock
• D) there is nothing that he can do

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Definitions:

Graphical Techniques

The use of plots, charts, and graphs to visualize, interpret, and analyze data.

Distribution

In statistics, it refers to the way in which values of a variable or a set of variables are spread or dispersed across a range of values.

Magnitude

A quantitative measure of size or extent, often used in context to describe the importance or severity of a variable or event.

Correlation Coefficient

A numerical measure that indicates the extent of a linear relationship between two variables, ranging from -1 to 1.