You own 1,000 shares of stock. You will receive a $20 per share dividend in one year. In two years, the firm will pay a liquidating dividend of $40 per share. The required return on the stock is 15%. Assume you only want $5000 total in dividends the first year. Calculate the total homemade dividend you will receive in year 2.

Answer rating: 100% (QA)

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