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