Al owns 800 shares of The Good Life Co. The company recently issued a statement that it will pay a dividend per share of $0.55 this year and a $0.60 per share liquidating dividend next year. Al wants equal dividend income in both years. Al earns 9 percent on his investments. Ignoring taxes, what will Al's total homemade dividend policy and what will be his dividend income in both years? Support your answer with detailed computations.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Al owns 800 shares of The Good Life Co. The company recently issued a statement that it will pay a dividend per share of $0.55 this year and a $0.60 per share liquidating dividend next year. Al wants equal dividend income in both years. Al earns 9 percent on his investments. Ignoring taxes, what will Al's total homemade dividend policy and what will be his dividend income in both years? Support your answer with detailed computations.
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