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6. You own 10,000 shares of stock in a firm. You will receive $4 per share dividend in one year. In two years, the firm
6. You own 10,000 shares of stock in a firm. You will receive $4 per share dividend in one year. In two years, the firm will pay a liquidating dividend of $50 per share. The required return on the company's stock is 12 percent. Ignore taxes, transaction costs, and other imperfections for the problem. a) Find the current share price of the stock. b) If you would rather have equal dividend on each of the next two years, show how you can achieve this by creating homemade dividends. What is the amount of cash flow you would receive from your strategy in the second year? C) Suppose you want only $20,000 total in dividends the first year, how can you use homemade dividend strategy to attain this? What will your homemade dividend be in two years
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