Homer, Inc. is expected to pay dividends of $100 per share at the end of one year and $100 at the end of the second year. The dividend in the second year is a liquidating dividend and the firm will cease to exist. Investors require a 12% return on investments of this type. There are 100 shares of stock outstanding. The firm is considering an alternate dividend policy that will pay out $120 in dividends per share the first year Under the alternative plan, any shortfall in funds will be raised by selling new equity. There are no taxes, transaction costs, or other market Assume an investor owns 10 shares of the firm's stock and wishes to create the alternate dividend plan without the aid of the firm. Is this possible, and if so, how? O A. Yes, the investor should create a homemade dividend by buying $200 worth of stock. O B. Yes, the investor should create a homemade dividend by buying $100 worth of stock. OC. No, it is not possible to create the alternate dividend plan O D. Yes, the investor should create a homemade dividend by selling $100 worth of stock E. Yes, the investor should create a homemade dividend by selling $200 worth of stock. MacBook Air oo0 F4 F5 F6 Homer, Inc. is expected to pay dividends of $100 per share at the end of one year and $100 at the end of the second year. The dividend in the second year is a liquidating dividend and the firm will cease to exist. Investors require a 12% return on investments of this type. There are 100 shares of stock outstanding. The firm is considering an alternate dividend policy that will pay out $120 in dividends per share the first year Under the alternative plan, any shortfall in funds will be raised by selling new equity. There are no taxes, transaction costs, or other market Assume an investor owns 10 shares of the firm's stock and wishes to create the alternate dividend plan without the aid of the firm. Is this possible, and if so, how? O A. Yes, the investor should create a homemade dividend by buying $200 worth of stock. O B. Yes, the investor should create a homemade dividend by buying $100 worth of stock. OC. No, it is not possible to create the alternate dividend plan O D. Yes, the investor should create a homemade dividend by selling $100 worth of stock E. Yes, the investor should create a homemade dividend by selling $200 worth of stock. MacBook Air oo0 F4 F5 F6