Question: Please respond with answers in excel so I can see how to enter the formulas correctly. Thanks You own 1,100 shares of stock in Avondale
Please respond with answers in excel so I can see how to enter the formulas correctly.
Thanks
| You own 1,100 shares of stock in Avondale Corporation. You will receive a dividend of $1.90 per share in one year. In two years, Avondale will pay a liquidating dividend of $60 per share. The required return on Avondale stock is 20 percent. |
| Ignoring taxes, what is the current share price of your stock?(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Share price | $ |
| If you would rather have equal dividends in each of the next two years, how many shares would you sell in one year?(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Number of shares |
| What would your cash flow be for each year for the next two years if you create equal homemade dividends?Hint:Dividends will be in the form of an annuity.(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Cash flow | $ |
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