Question: Question 16 2 pts Homemade capital structure occurs when: Shareholders sell shares every 3 months to create a pseudo dividend stream. Shareholders double their shareholdings

 Question 16 2 pts Homemade capital structure occurs when: Shareholders sell

Question 16 2 pts Homemade capital structure occurs when: Shareholders sell shares every 3 months to create a pseudo "dividend" stream. Shareholders double their shareholdings to double their gains in up markets and double their loses in down markets. O Shareholders sell all of their shares to avoid the risk of stock loses. Shareholders borrow or lend to recreate the cash flows that would occur if the firm had changed its capital structure

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!