Nandel is a retired short-order cook living on a fixed income in the state of Utopia where all financial markets are perfectly efficient. Nandal has 20,000 shares of the Sugarcooky Corp., which pays an annualized dividend of $1.00 per share. Sugarcooky sells at a P/E of 10, has maintained a payout ratio of 50% for many years, and has not grown in some time. Management has recently announced that it will reduce Sugarcooky's payout ratio to 25% but expects earnings to grow at 5% from now on.
If Nandal keeps his money in Sugarcooky but needs to maintain his current income, how many shares will he have to sell in the first year?