Suppose that Debbie owns 100 shares and disagrees with the firms policy of maintaining a dividend of 12, preferring instead to receive a lower payout than have her shares diluted. What could she do to achieve her desired outcome?

(25) Let Rocksteady Industries be an all-equity firm in a Modigliani-Miller world with 500 shares outstanding and a cost of equity of rE=0.15. Suppose that it has announced a dividend of 12 per share equal to its expected annual earnings