Joan currently owns 800 shares of RST Inc. RST has a high-dividend-payout policy and this year will

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Joan currently owns 800 shares of RST Inc. RST has a high-dividend-payout policy and this year will pay $3.00 cash dividend on its shares selling currently at $30.00 per share. Joan wants a low-dividend-payout policy of 5% of the stock price. What will Joan need to do to convert this high-dividend-payout policy to a low dividend-payout policy for her?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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