Priscilla owns 500 shares of Delta stock.It is January 1,2010,the company recently issued a statement that it will pay a $1.00 per share dividend on December 31,2010,and a $.50 per share dividend on December 31,2011.Priscilla does not want any dividend this year but does want as much dividend income as possible next year.Her required return on this stock is 10%.Ignoring taxes,what will Priscilla's homemade dividend per share be in 2011?
A) $0
B) $.50
C) $1.50
D) $1.60
E) $1.68
Correct Answer:
Verified
Q45: On the date of record the stock
Q49: The dividend-irrelevance proposition of Miller and Modigliani
Q51: Homemade dividends are described by Modigliani and
Q52: A reverse split is when:
A)the stock price
Q53: The KatyDid Co. is paying a $1.25
Q54: Murphy's,Inc.has 12,000 shares of stock outstanding with
Q55: The Rent It Company declared a dividend
Q57: You owned 200 shares last year and
Q57: A firm has a market value equal
Q60: A firm has a market value equal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents