c17 q8

Change to high-dividend-payout policy. Kevin currently owns 900 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.26 cash dividend on its shares, which are selling currently at $20.50. Kevin wants a high-dividend-payout policy of 7% of the stock price. What will Kevin need to do to convert this low-dividend-payout policy to a high-dividend-payout policy for himself? Assume a world of no taxes and transaction costs. What will Kevin need to do to convert this low-dividend-payout policy to a high-dividend-payout policy for himself? (Select the best response.) A. Kevin needs to purchase 51.59 more shares of stock. B. Kevin needs to purchase 52.25 more shares of stock. C. Kevin needs to sell 52.25 shares of stock. D. Kevin needs to sell 51.59 shares of stock. E. Kevin needs to do nothing