Dividend reinvestment plan

Assignment Help Financial Management

Reference no: EM131997876

The Altria Group pays a generous cash dividend. Suppose an investor in Altra does not need a regular income. What could she do? If there were no trading costs, would she have any reason to care about Altria's payout policy? What if there is a brokerage fee on the purchase of new shares? What if Altria has a divi- dend reinvestment plan that allows the investor to buy shares at a 5% discount?

Reference no: EM131997876

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