q17 q8 Change to high-dividend-payout policy Kevin currently owns 1,100 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.23 cash dividend on its shares, which are selling currently at $20.00. Kevin wants a high-dividend-payout policy of 8%of the stock price. What will Kevin need to do to convert thislow-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 ahigh-dividend-payout policy for himself?(Select the best response.)

A.Kevin needs to sell 75.35 shares of stock.

B.Kevin needs to purchase 76.23 more shares of stock.

C.Kevin needs to purchase 75.35more shares of stock.

D.Kevin needs to sell76.23 shares of stock.

E.Kevin needs to do nothing.