Homemade Dividend Refers to the Process by Which an Investor

question 85

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

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Definitions:

Net Property

The total value of a company’s property, plant, and equipment assets after deducting accumulated depreciation and impairment losses.

Plant And Equipment

Long-term physical assets used in the operation of a business, such as machinery, buildings, and vehicles.

Current Asset

Assets expected to be converted into cash, sold, or used up within one year or within the business's operating cycle, whichever is longer.

Useful Life

The estimated duration for which an asset is expected to be operational, useful, and productive for its intended purpose.