Cash for each level of desired dividend income level

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Reference no: EM13870866

Creating own dividend policy. 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” of $50,000, $100,000, or $250,000 from his stock holdings, 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.

Please provide formulas/work for all parts of the question.

Reference no: EM13870866

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