Question
Assume you own 6,000 shares of stock in a company that is expected to pay a dividend in the amount of $2.25 per share a
Assume you own 6,000 shares of stock in a company that is expected to pay a dividend in the amount of $2.25 per share a year from now. Currently, the stock sells for $100 per share. A year from now just after the $2.25 dividend is paid, the stock is expected to sell for $80 per share. If you want to create homemade dividends so that you receive exactly $5,100 a year from now, how many shares will you own immediately after you created the homemade dividends (i.e. after you sold or purchased shares to create your preferred cash flow amount)? (show all calculations step by step PLEASE!)
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