You own 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.)

You own 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.)

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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