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mework Question 3 , P 1 4 - 6 ( similar to ) Part 1 of 3 Points: 0 of 1 Dividend irrelevance You own

mework
Question 3, P14-6(similar to)
Part 1 of 3
Points: 0 of 1
Dividend irrelevance You own 50,000 shares of Broadcom, which currently sells for $403.50 and has announced its plan to pay a $3.50 dividend. You don't need the cash flow and would prefer that Broadcom reinvest earnings rather than paying them out as dividends. Describe in detail (give specific numbers) how you can unwind Broadcom's dividend policy. What is the vale of your position before and after the dividend once you have unwound its effects? Assume that markets are perfect, so there are no transactions costs or taxes to worry about.
The value of your position before the dividend is $ million. (Round to three decimal places.)
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