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Ada owns 80 shares of firm ABC which is trading at $40. Firm ABC has a long-standing history of maintaining a ZERO PAYOUT. However, Ada
Ada owns 80 shares of firm ABC which is trading at $40. Firm ABC has a long-standing history of maintaining a ZERO PAYOUT. However, Ada prefers a dividend policy of $3 per share. Assume no taxes and transaction costs, to homemade the required dividend, Ada should:
A. sell 6 shares. B. buy 6 shares. C. buy 3 shares. D. sell 3 shares.
why? pls explain
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