(16 points) The stock of Line of Duty (LoD), of which you own 645 shares, will pay a 3-per-share dividend one year from today. Two years from now, LoD will close its doors; stockholders will receive liquidating dividends of 23 per share (i.e. SE will be wound up and stockholders will receive 23 per share that they own). The required rate of return on LoD stock is 15%. The company is entirely financed with equity. Assume there are no taxes.

1. (4 points) What is the current price of LoD stock?

1. (12 points) You prefer to receive equal amounts of money at the end of each of the next two years.

1. (4 points) What is the amount that you will receive each year?

1. (8 points) How will you accomplish this? (i.e. how many shares will you sell and when?)