You own 1100 shares of stock in avondale corporation you


You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.40 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $72 per share. The required return on Avondale stock is 20 percent. Suppose you want only $600 total in dividends the first year.

What will your homemade dividend be in two years? (Do not round intermediate calculations.)

Homemade dividend $

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Financial Management: You own 1100 shares of stock in avondale corporation you
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