Creating homemade dividends

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Reference no: EM131057699

You own 1000 shares of stock in Beal's Corporation. You will receive $.75 per-share dividend in one year. Into years, Beal's will pay a liquidating dividend of $40 per share. The required return on Beal's stock is 16%. Suppose you want only $190 total in dividends the first year, show how you can accomplish this by creating homemade dividends. Your total dividend amount in your two will be_____?

A. $40,655.7

B. $40,649.6

C. $41,678.7

D. $42,675.9

Please show detail.

Reference no: EM131057699

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