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You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.65 per share dividend in one year. In two years, Avondale will
You own 1,000 shares of stock in Avondale Corporation. You will receive a $0.65 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $30 per share. The required return on Avondale stock is 14 percent. Suppose you want only $210 total in dividends the first year, show how you can accomplish this by creating homemade dividends. Your total dividend amount in year 2 will be $___________.
(Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))
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