You own 1,000 shares of stock in company a. You will receive an 80% per share dividend
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Question:
You own 1,000 shares of stock in company a. You will receive an 80% per share dividend in 1 year. In 2 years, company a will pay a liquidating dividend of 40$ per share. The required return on company a is 14%. What will your dividend income be this year if yuo use homemade dividends to create two equal annual dividend payments?
- 18,667
- 15,184
- 15,980
- 20,400
- 19,117
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