You own 1,800 shares of stock in Avondale Corporation. You will receive a $1.80 per share dividend
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Question:
You own 1,800 shares of stock in Avondale Corporation. You will receive a $1.80 per share dividend in one year. In two years, the company will pay a liquidating dividend of $80 per share. The required return on the company's stock is 25 percent. Suppose you want only $600 total in dividends the first year. |
What will your homemade dividend be in two years? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32..) |
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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