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ABC plans to pay dividends of $20, $80, and $20 (per share) in the next three years and $150 (per share) liquidating dividend in year
ABC plans to pay dividends of $20, $80, and $20 (per share) in the next three years and $150 (per share) liquidating dividend in year 4. You own 150 shares of stock. The required return on the stock is 10%.
a) If you want equal dividends in each of the four years, how many shares you must buy/sell in each year? (Positive value for buy and negative value for sell)
b) Redo part a) if you want total dividends of $9,000 and $12,000 in year 2 and year 3 respectively and equal amount in year 1 and year 4.
I need correct calculation and solutions please
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