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You own 2,200 shares of stock in Armstrong Corporation. You will receive a $1.40 per share dividend in one year. In two years, Armstrong will
You own 2,200 shares of stock in Armstrong Corporation. You will receive a $1.40 per share dividend in one year. In two years, Armstrong will pay a liquidating dividend of $48 per share. The required return on Armstrong stock is 20%. Suppose you want only $900 total in dividends the first year.
What will your homemade dividend be in two years? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
Homemade dividend $
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