Xx P17-12 (similar to) Question Help 0 Change to high-dividend-payout policy in world of taxes. Kevin currently owns 700 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.28 cash dividend on its shares, which are selling currently at $20.50. Kevin wants a high-dividend-payout policy of 5.5% of the stock price, or $789.25 after tax. Assume Kevin bought the stock at $15.50 per share and his tax rates are 35% on dividends and 20% on capital gains. If Kevin changes the dividend policy from a low-dividend-payout policy to a high-dividend-payout policy, how does his wealth change? What is Kevin's wealth in paper and cash under the current low-dividend-payout policy? $ 14350 (Round to the nearest dollar.) What is Kevin's wealth in paper and cash under the high-dividend-payout policy? $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. ? 1 part remaining Clear All Check Answer Xx P17-12 (similar to) Question Help 0 Change to high-dividend-payout policy in world of taxes. Kevin currently owns 700 shares of Cylon, Inc. Cylon has a low-dividend-payout policy and this year will pay a $0.28 cash dividend on its shares, which are selling currently at $20.50. Kevin wants a high-dividend-payout policy of 5.5% of the stock price, or $789.25 after tax. Assume Kevin bought the stock at $15.50 per share and his tax rates are 35% on dividends and 20% on capital gains. If Kevin changes the dividend policy from a low-dividend-payout policy to a high-dividend-payout policy, how does his wealth change? What is Kevin's wealth in paper and cash under the current low-dividend-payout policy? $ 14350 (Round to the nearest dollar.) What is Kevin's wealth in paper and cash under the high-dividend-payout policy? $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. ? 1 part remaining Clear All Check