Which of the following tends to increase the ability of a shareholder to create his or her own homemade dividend policy?
I.low taxes on capital gains
II.dividend reinvestment plans
III.large holdings of shares
IV.low cost equity purchases
A)II only
B)II and III only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Low taxes on capital gains, dividend reinvestment plans, large holdings of shares, and low-cost equity purchases all contribute to a shareholder's ability to create a homemade dividend policy by allowing flexibility in managing income and reinvestment.

Which of the Following Tends to Increase the Ability of a Shareholder