If a company pays dividends, but a shareholder does not desire dividend income, what can he/she do according to the home-made dividend theory? Invest the dividends in Treasury bills Spend the undesired dividends on family expenses Use the dividends to pay off personal debt Use the dividends to buy more shares of the company
Added by Albert J.
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Step 1: If a shareholder does not desire dividend income, they can choose to reinvest the dividends back into the company. Show more…
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