Illustrate what will priscilla homemade dividend per share

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Q. Priscilla owns 500 shares of Delta stock. The industry recently issued a statement which it will pay a $1.00 per share dividend this year also a $.50 per share dividend next year. 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 12 percent. Ignoring taxes, illustrate what will Priscilla's homemade dividend per share be next year?'

Reference no: EM1395661

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