You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.40 per...
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| You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.40 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $72 per share. The required return on Avondale stock is 20 percent. Suppose you want only $600 total in dividends the first year. |
| What will your homemade dividend be in two years? (Do not round intermediate calculations.) |
| Homemade dividend | $ |
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