Ch. 15 Dividends - Tailoring the Income Stream A person has much of his savings invested in 15,000 shares of Grass Roots common stock. The stock is currently selling for $12 per share and has been paying a dividend of $.75 per share. Grass Roots has discontinued its dividend but begins to grow at 7% a year. Assuming no transaction costs. Q. How can this person maintain his income and his position in the firm at the end of the year?

Answer rating: 100% (QA)

To maintain his income and his position in the firm at the end of the year after Grass Roots discont... View the full answer