Homemade dividend in two years

Reference no: EM13144709

You own 1,200 shares of stock in Avondale Corporation. You will receive a 80-cent per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $45 per share. The required return on Avondale stock is 15 percent. If you want only $225 total in dividends the first year, what will your homemade dividend be in two years.

Reference no: EM13144709

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