Only accept hand$-$written assignment. Use pen and paper, ipad or tablet, save as pdf file and

upload. After uploading your assignment, download and open it to make sure that the file is not

corrupted. Please keep at least $2$ decimal points for dollar amounts and at least $)$

digits for rates.

Question $1$

You own $600$ shares of ABC stock. Each stock will pay $$5$ dividend in year $1,$$$15$ dividend in year

$2,$$$45$ dividend in year $3$ and $$135$ liquidating dividend in year $4.$ The required return on the

stock is $10\%.$

a$)$ What is the current stock price?

b$)$ If you want dividend of $$x$ in year $1,$$$2x$ in year $2,$$$3x$ in year $3$ and $$4x$ in year $4,$ how many

shares you must sell$/$buy at the end of year $1?$ At the end of year $2?$ At the end of year $3?$

$($Assume that you can buy$/$sell fractional shares$)$