Dividend Policy and Firm Value: You Purchased 2,000 Shares of NoDiv

question 25

Multiple Choice

Dividend policy and firm value: You purchased 2,000 shares of NoDiv Technologies several years ago at $50 per share. The company does not pay a regular cash dividend. You want to "manufacture" your own dividend by selling a little bit of stock each quarter. The company's stock is currently trading at $75. If capital gains are taxed at 15 percent, how many shares would you have to sell to receive $3,420 in cash?

• A) 27 shares
• B) 46 shares
• C) 48 shares
• D) 51 shares

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Definitions:

Haitian Revolution

A successful anti-slavery and anti-colonial insurrection between 1791 and 1804, leading to the establishment of Haiti as a sovereign nation.

Toussaint Louverture

A leader of the Haitian Revolution, who played a key role in the country’s fight for independence from France, becoming a symbol of the struggle against slavery.

Quasi War

An undeclared naval conflict between the United States and France from 1798 to 1800, arising from disputes over treaties and naval harassment.

Undeclared

Refers to a situation or status not officially announced or confirmed, often used in the context of wars, intentions, or academic majors.