Question

BDCs, MFs, and REITs must distribute ____% of income to shareholders.

A) 50%
B) 75%
C) 90%
D) 100%

Answer 1

BDCs, MFs, and REITs must distribute 90% of income to shareholders.

Step-by-step explanation:

BDCs, MFs, and REITs must distribute 90% of income to shareholders. This is known as the distribution requirement or payout ratio. It means that these types of investment vehicles are required by law to distribute most of their income to shareholders as dividends or other forms of income.