Creating own dividend policy. Erik owns 1,800,000 shares of Wiseguy Entertainment. Wiseguy just declared a...
50.1K
Verified Solution
Link Copied!
Question
Finance
Creating own dividend policy. Erik owns 1,800,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of 0.06 per share. The stock is currently selling for $5.40. If Erik wants an annual "dividend income of $64,000, $108,000 or $248,000 from his stock holdings, what must he do to get these levels of income? What is his wealth in paper and cash for each level of desired dividend income? Assume a world of no taxes. First, if Erik wants an annual "dividend income of $64,000 from his stock holdings, what must he do to get this level of income? (Select the best response) O A Erik needs to purchase 8.239.70 more shares of stock OB Erk needs to sell 8.239.70 shares of the stock owned. C. Erik needs to do nothing OD. Erik needs to purchase 26.217.23 more shares of stock O E. Erik needs to sell 26.217.23 shares of the stock owned
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
