You own 5,000 shares of stock in a firm. You will receive $4 per share dividend in one year. In two years, the firm will

[answerhappygod]

You own 5,000 shares of stock in a firm. You will receive $4 per
share dividend in one year. In two years, the firm will pay a
liquidating dividend of $40 per share. The required return on the
company’s stock is 14 percent. Ignore taxes, transaction costs, and
other imperfections for the problem.
a) Find the current share price of the stock.
b) If you would rather have equal dividend on each of the next
two years, show how you can achieve this by creating homemade
dividends. What is the amount of cash flow you would receive from
your strategy in the second year?
c) Suppose you want only $5,000 total in dividends the first
year. What will your homemade dividend be in two years？