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Banner owns 1000 shares in a company and the companys shares are trading at 50 per share. The company has announced that it intends paying
Banner owns 1000 shares in a company and the companys shares are trading at 50 per share. The company has announced that it intends paying a dividend of 2 per share. Banner would prefer the company to adopt a higher payout so as to receive a dividend of 4 per share. How many shares would Banner have to sell to create a home-made dividend that would finance the shortfall between his preferred dividend payment and the actual dividend? Assume shares are divisible and give your answer to 2 decimal places.
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