N the absence of taxes or transaction costs, investors
A) would prefer immediate dividends to future capital gains.
B) who did not want a dividend could use dividends to purchase more shares.
C) could create their own dividends by selling the appropriate number of shares.
D) Both B and C are correct.
Answer: D
Business
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An owner grants a life estate to her grandson and stipulates that upon her grandson's death he title will pass to her son-in-law. The son-in-law's interest would be:
A. A reversion interest. B. A remainder interest. C. An enstate for years, D. An enstate of inheritance.
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A company's earnings are $3 per share, its dividend is $2 per share, and its stock price is $30 per share. Its PE ratio is
A) 15. B) 10. C) 1.5. D) 33.
Business