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Assume you own 6,000 shares of stock in a company that is expected to pay a dividend of $0.25 per share a year from now.

Assume you own 6,000 shares of stock in a company that is expected to pay a dividend of $0.25 per share a year from now. The stock currently sells for $55 and is expected to sell for $50 a year from now after the $0.25 dividend is paid. If your preference is to receive exactly $1,200 in dividends a year from now and you accomplish this by creating homemade dividends, how many shares will you own immediately after you created the homemade dividends (i.e. after you bought or sold shares to create your desired cash flow)?

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