Question: Pearl currently owns 600 shares of Ajax Incorporated Ajax has
Pearl currently owns 600 shares of Ajax, Incorporated. Ajax has a low-payout dividend policy, and this year will pay 4% cash dividend on its shares selling currently at $40. Pearl wants a high-dividend policy of 9% of the stock price. What will Pearl need to do to convert this low- dividend policy to a high-dividend policy for herself? Assume a world of no taxes.
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