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Assume you own 12,000 shares in a company that is expected to pay a $4.50 dividend per share a year from now. Th stock currently
Assume you own 12,000 shares in a company that is expected to pay a $4.50 dividend per share a year from now. Th stock currently sells for $250 per share. Just after the $4.50 dividend is paid a year from now, the stock is expected to sell for $160 per share. If you plan to use homemade dividends to receive exactly $250,000 a year from now, how many shares do you expect to own immediately after you create the homemade dividends (i.e. after you purchase or sell shares to create your desired cash flow amount)?
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