Wichita Realty Trust is expected to pay a modest dividend of $1.00 per share for two years

Question:

Wichita Realty Trust is expected to pay a modest dividend of $1.00 per share for two years and then $2.00 per share for years three through five. Then in year six, Wichita Realty Trust is planning to pay a $40.00-per-share liquidating dividend and go out of business. What is the value of a share of this firm if the required return is 10%?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...