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Change to high-dividend-payout policy. Kevin currently owns 800 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.35 cash
Change to high-dividend-payout policy. Kevin currently owns 800 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.35 cash dividend on its shares, which are selling currently at $21.00. Kevin wants a high-dividend-payout policy of 6% 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
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