Metropolitan Prop & Casualty is planning to pay a $5.75 per…
Metropolitan Prop & Casualty is planning to pay a $5.75 per share dividend next year, followed by a liquidating dividend of $90 the following year when they cease operations. You currently own 300 shares and would prefer to receive the same cash flow each of the next two years, instead. As such, you plan to homemake a dividend of $44.7546 per share for each of the next two years, instead. How many shares of stock will you need to sell after you receive the first dividend if the cost of equity of the stock is 16 percent? (Round your answer to the nearest share)
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