"In an economy with no taxes or other imperfections, how can an investor, who owns 100 non-dividend paying shares priced at $20 each, create 10% homemade dividend?" Sell 20 shares and retain 80 shares priced at $20. Sell 10 shares and retain 90 shares priced at $22. Sell 10 shares and retain 90 shares priced at $18. Homemade dividends can be created only in an economy with imperfections. Sell 10 shares and retain 90 shares priced at $20. An investor is more likely to prefer a high dividend payout if that investor: pays taxes on dividends but not on capital gains. is a corporation. pays a higher tax rate than the dividend payer. does not require additional cash flows. has a high marginal tax rate on dividends. "LTE stock sells for $27.93 per share and there are 320,000 shares outstanding. The company plans a 4-for-5 reverse stock split . Assuming no market imperfections or tax effects, what will the stock price be after the reverse split?" $22.34 $27.93 $27.93 $31.03 $34.91 "In an economy with no taxes or other imperfections, how can an investor, who owns 100 non-dividend paying shares priced at $20 each, create 10% homemade dividend?" Sell 20 shares and retain 80 shares priced at $20. Sell 10 shares and retain 90 shares priced at $22. Sell 10 shares and retain 90 shares priced at $18. Homemade dividends can be created only in an economy with imperfections. Sell 10 shares and retain 90 shares priced at $20. An investor is more likely to prefer a high dividend payout if that investor: pays taxes on dividends but not on capital gains. is a corporation. pays a higher tax rate than the dividend payer. does not require additional cash flows. has a high marginal tax rate on dividends. "LTE stock sells for $27.93 per share and there are 320,000 shares outstanding. The company plans a 4-for-5 reverse stock split . Assuming no market imperfections or tax effects, what will the stock price be after the reverse split?" $22.34 $27.93 $27.93 $31.03 $34.91