Question
c17 q5 need help with all 6 parts Creating own dividend policy.Erik owns 2,200,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of
c17 q5 need help with all 6 parts
Creating own dividend policy.Erik owns 2,200,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of $0.06 per share. The stock is currently selling for $5.60. If Erik wants an annual "dividend income" of $36,000, $132,000 or $282,000 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 $36,000 from his stock holdings, what must he do to get this level of income?(Select the best response.)
A.Erik needs to purchase 17,328.52 more shares of stock.
B.Erik needs to sell 17,328.52 shares of the stock owned.
C.Erik needs to do nothing.
D.Erik needs to purchase 27,075.81 more shares of stock.
E.Erik needs to sell 27,075.81 shares of the stock owned.
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