Question

hich one of the following refers to the ability of shareholders to undo a company's dividend policy and create an alternative dividend policy by reinvesting dividends or selling shares of stock? Multiple Choice Homemade dividend Personalization Offsetting leverage Recapitalization Perfect foresight model

Answer 1

Homemade Dividend Policy

Step-by-step explanation:

Homemade dividends can be defined as a concept in which liquid markets an investor can restructure a company's dividend policy to equate his own cash flow objectives. In a case where an investor receives a dividend when he does not want any cash inflow, he has the option of reinvesting the amount back into the company's stock.