LewCo announces early on the morning of January 1, 2020 (after the 2019 dividend payment) that the recent housing crash and subsequent regulatory changes have reduced demand for their construction projects, resulting in a shift in their earnings outlook and dividend policy. They announce that they plan to hold their dividend constant at $10 per year for the foreseeable future. What should be the value of the company after the announcement ? Assume that the company's riskiness is unchanged with a discount factor of 8.65% .

You believe the housing market will recover, and LewCo will resume growing its dividend. What is the company's value assuming dividend growth is zero for three years and then increases again at 6% per year ? Continue using the discount factor from question A. you might want to separate the company's value into two pieces: the value for year four and beyond plus the value of the first three years