Question: Erik owns 2 000 000 shares of Wiseguy Entertainment Wiseguy just declared
Erik owns 2,000,000 shares of Wiseguy Entertainment. Wiseguy just declared a cash dividend of $0.05 per share. The stock is currently selling for $5.00. If Erik wants an annual “dividend income” from his stock holdings of $50,000, $100,000, or $250,000, what must he do to get these levels of income? What is his wealth in paper and cash for each level of desired dividend income level? Assume a world of no taxes.
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