FIN 402 Week 3 AssignmentCase Problem 6.2 Wally Wonders Whether There’ s a Place for Dividends
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FIN 402 Week 3 Assignment Relative Performance Paper =========================================
FIN 402 Week 3 AssignmentCase Problem 6.2 Wally Wonders Whether There’ s a Place for Dividends
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Case Problem 6.2 Wally Wonders Whether There’ s a Place for Dividends Wally Wilson is a commercial artist who makes a good living by doing freelance work— mostly layouts and illustrations— for local ad agencies and major institutional clients( such as large department stores). Wally has been investing in the stock market for some time, buying mostly high-quality growth stocks as a way to achieve longterm growth and capital appreciation. He feels that with the limited time he has to devote to his security holdings, high-quality issues are his best bet. He has become a bit perplexed lately with the market, disturbed that some of his growth stocks aren’ t doing even as well as many good-grade income shares. He therefore decides to have a chat with his broker, Al Fried. During their conversation, it becomes clear that both Al and Wally are thinking along the same lines. Al points out that dividend yields on income shares are indeed way up and that, because of the state of the economy, the outlook for growth stocks is not particularly bright. He