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S17-11 Homemade Dividends [LO2] You own 1,000 shares of stock in Avondale Corporation. You will receive...

S17-11 Homemade Dividends [LO2]

You own 1,000 shares of stock in Avondale Corporation. You will receive a $3.15 per share dividend in one year. In two years, the company will pay a liquidating dividend of $57 per share. The required return on the company’s stock is 15 percent. Suppose you want only $1,500 total in dividends the first year.

What will your homemade dividend be in two years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Homemade dividend: ______

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