Homemade Dividend Refers to the Process by Which an Investor

question 90

Multiple Choice

Homemade dividend refers to the process by which an investor:

• A)can take on more debt.
• B)chooses between equity and debt.
• C)can sell shares to create a dividend policy to suit his preferences.
• D)reinvests dividend payments.
• E)automatically withdraws money from his investment account.

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Definitions:

Long-Run Supply Curve

A graphical representation that shows how the quantity of goods supplied by an industry changes over time in response to changes in price, assuming that all inputs can be varied.

Increasing-Cost Industry

An industry in which the costs of production increase as the industry's output expands, typically due to resource limitations or increased demand for inputs.

Slope

A measure of the steepness or incline of a line, representing the rate at which y-values change for each unit increase in x-values.

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market.