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ABC stock sells for $102 a share and pays a per share dividend of $2. Bob...

ABC stock sells for $102 a share and pays a per share dividend of $2. Bob owns 100 shares and prefers a per share dividend of $5. According to the Modigliani-Miller Dividend Irrelevance Theory, how many shares would Bob need to sell on the ex-dividend date to create his desired income stream?

  1. 1 share
  2. 2 shares
  3. 3 shares
  4. 4 shares
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