c17 q7 Change to low-dividend-payout policy. Scott currently owns 700 shares of TwelveColonies, Inc. Twelve Colonies has a high-dividend-payout policy and this year will pay a $2.90 cash dividend on its shares, which are selling currently at $24.50.Scott wants alow-dividend-payout policy of 2.5% of the stock price. What will Scott need to do to convert this high-dividend-payout policy to a low-dividend-payout policy for himself? Assume a world of no taxes and transaction costs.

What will Scott need to do to convert this high-dividend-payout policy to alow-dividend-payout policy for himself?(Select the best rersponse.)

A.Scott needs to sell

65.36

shares of stock.

B.

Scott needs to do nothing.

C.Scott needs to purchase

65.36

more shares of stock.

D.Scott needs to sell

74.13

shares of stock.

E.Scott needs to purchase

74.13

more shares of stock.