Question
This question is about homemade dividends. You own 2950 shares of stock in Avondale Corporation. The company pays no dividend in one year. In two
This question is about homemade dividends. You own 2950 shares of stock in Avondale Corporation. The company pays no dividend in one year. In two years, the company will pay a positive liquidating dividend per share. The required return on the company's stock is 12 percent. There is no taxes.
If you would rather have Year One dividend equal to half of Year Two dividend, (that is, if Year One dividend is $1, then Year Two dividend is $2.) how many shares would you sell in one year? (Do not round intermediate calculations and keep 2 decimal places).
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