Suppose Genron does not adopt the third alternative policy and instead pays a $2 dividend per share

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Suppose Genron does not adopt the third alternative policy and instead pays a $2 dividend per share today. Show how an investor holding 2000 shares could create a homemade dividend of

$4.50 per share * 2000 shares = $9000 per year on her own.

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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Suppose Genron does not adopt the third alternative policy and instead pays a $2 dividend per share

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PLAN If Genron pays a 2 dividend the investor receives 4000 in cash ...View the full answer

Fundamentals Of Corporate Finance

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