Assume you own 4,000 shares of stock in a company that is expected to pay a dividend
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Assume you own 4,000 shares of stock in a company that is expected to pay a dividend in the amount of $1.25 per share a year from now. Currently, the stock sells for $50 per share. A year from now just after the $1.25 dividend is paid, the stock is expected to sell for $40 per share. If you want to create homemade dividends so that you receive exactly $5,600 a year from now, how many shares will you own immediately after you created the homemade dividends (i.e. after you sold or purchased shares to create preferred cash flow amount)?
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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