1,000 shares of stock in Avondale Corporation. You will receive a $3.45 per share dividend in one year. In two years, the company will pay a liquidating dividend of $62 per share. The required return on the company's stock is 15 percent. Suppose you want only $1,500 total in dividends the first year. What will your homemade dividend be in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Homemade dividend $ (1,453.21) ►

1,000 shares of stock in Avondale Corporation. You will receive a $3.45 per share dividend in one year. In two years, the company will pay a liquidating dividend of $62 per share. The required return on the company's stock is 15 percent. Suppose you want only $1,500 total in dividends the first year. What will your homemade dividend be in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Homemade dividend $ (1,453.21) ►

Name: You own 1,000 shares of stock in Avondale Corporation. You will recei
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Description: You own 1,000 shares of stock in Avondale Corporation. You will receive a $3.45 pershare dividend in one year. In two years, the company will pay a liquidating dividend of$62 per share. The required return on the company's stock is 15 percent. Suppo

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 17P

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