you own 1000 shares of stock in avondale corporation. you will receive a $3.15 per sahre...
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you own 1000 shares of stock in avondale corporation. you willreceive a $3.15 per sahre dividend in one year. in two years, thecompany will pay a liquidating dividend of $57 per share. therequired return on the company's stock is 15 percent. ignoringtaxes, what is the current share price of your stock? if you wouldrather have equal dividends in each of the next two years, how manyshares would you sell in one year? what would your cash flow be foreach year for the next two years? hint: dividends will be in theform of an annuity
you own 1000 shares of stock in avondale corporation. you willreceive a $3.15 per sahre dividend in one year. in two years, thecompany will pay a liquidating dividend of $57 per share. therequired return on the company's stock is 15 percent. ignoringtaxes, what is the current share price of your stock? if you wouldrather have equal dividends in each of the next two years, how manyshares would you sell in one year? what would your cash flow be foreach year for the next two years? hint: dividends will be in theform of an annuity
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you own 1000 shares of stock in avondale corporation. you willreceive a $3.15 per sahre dividend in one year. in two years, thecompany will pay a liquidating dividend of $57 per share. therequired return on the company's stock is 15 percent. ignoringtaxes, what is the current share price of your stock? if you wouldrather have equal dividends in each of the next two years, how manyshares would you sell in one year? what would your cash flow be foreach year for the next two years? hint: dividends will be in theform of an annuity
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