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You have invested $4,320 in a companys stock, which is expected to pay a dividend of $6 in one year and a liquidating dividend of
You have invested $4,320 in a companys stock, which is expected to pay a dividend of $6 in one year and a liquidating dividend of $15 per share in two years. You would like to receive equal dividends in each of the two years instead. Using a required rate of 25%, calculate the annual cash flow you will have from homemade dividends.
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