You own 1,500 shares of stock in Avon Corporation. You will receive a $0.80 per share dividend this year. In next year, Avon will pay a liquidating dividend of $35 per share. The required return on Avon stock is 16%. You only want $200 total in dividends this year and accomplish this by using homemade dividends. Suppose after doing homemade, you will not buy or sell Avon stock anymore. What will your total dividend amount be the next year?

Select one:

a. $35,696

b. $40,764

c. $53,660