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You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.80 per...

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Finance

You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.80 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $35 per share. The required return on Avondale stock is 16 percent. You only want $200 total in dividends in year one and accomplish this by using homemade dividends. What will your total dividend amount be in year two?

Question 25 options:

$17,900

$20,764

$35,696

$41,402

$43,878

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