The correct answer is D. All of the above.
The current money method of dividend payment is a method of paying dividends in which the amount of the dividend is based on the current market value of the shares. This means that investors who bought shares at a higher price will receive a higher dividend than investors who bought shares at a lower price. This method is also known as the segmented or investment block method.
The current money method of dividend payment is different from the traditional method of dividend payment, in which the amount of the dividend is based on the company’s earnings. Under the traditional method, all shareholders receive the same dividend, regardless of when they bought their shares.
The current money method of dividend payment is more equitable than the traditional method, because it gives investors who bought shares at a higher price a higher return on their investment. However, it can also be more volatile, because the amount of the dividend can fluctuate depending on the market value of the shares.
Here is a brief explanation of each option:
- Option A: Returns depend on when the investment was made. This is true because the amount of the dividend is based on the current market value of the shares. Investors who bought shares at a higher price will receive a higher dividend than investors who bought shares at a lower price.
- Option B: Different investment blocks get different returns. This is also true because the amount of the dividend is based on the current market value of the shares. Investors who bought shares at a higher price will receive a higher dividend than investors who bought shares at a lower price.
- Option C: It is also called segmented or investment block method. This is true because the current money method of dividend payment is also known as the segmented or investment block method.
I hope this helps!