What must the liquidating dividend be

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Reference no: EM131985849

1. JJ Industries will pay a regular dividend of $1.40 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 6 percent, and the current share price is $56, what must the liquidating dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. An investment cost $757 and is expected to produce cash flows of $70 at the end of Year? 1, ?$110 at the end of Year? 2, $95 at the end of Year? 3, and $650 at the end of year 4.

What rate of return would you earn if you bought this? investment?

Reference no: EM131985849

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