Question: Question 7 In the previous problem, suppose you want only $200 total in dividends the first year, what will your homemade dividend be in two

 Question 7 In the previous problem, suppose you want only $200
total in dividends the first year, what will your homemade dividend be

Question 7 In the previous problem, suppose you want only $200 total in dividends the first year, what will your homemade dividend be in two years? Question 6 (challenge) You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.70 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $40 per share. The required return on Avondale stock is 15%. What is the current share price? If you would rather have equal dividends in each of the two years, show how you can accomplish this by creating homemade dividends. Question 7 In the previous problem, suppose you want only $200 total in dividends the first year, what will your homemade dividend be in two years? Question 6 (challenge) You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.70 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $40 per share. The required return on Avondale stock is 15%. What is the current share price? If you would rather have equal dividends in each of the two years, show how you can accomplish this by creating homemade dividends

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