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NEW QUESTION: 1
Barklay Franton's firm is an all-equity firm that has earnings before tax of $200,000 and 20,000 shares of stock outstanding, with each share being worth $100. Assume that you own 2,000 shares, there are no taxes, and capital markets are perfect. Assume that the firm pays no dividend. How could you transact on your own initiative to pay yourself a dividend of $5 per share?
A. Sell 20 shares.
B. Sell 200 shares.
C. Sell 100 shares.
Answer: C
Explanation:
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NEW QUESTION: 2
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A. Option B
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