Q$2.$ Mutanto Capital:$[1]$ A new financial services firm, Mutanto capital, has invented a new kind of financial instrument covering a share of MSXR$[2].$ Any investor can send in a share of MSXR to Mutanto, and receive $2$ certificates back: $1$ appreciation certificate $($AC$)$ and $1$ dividend certificate $($DC$).$ The DC is entitled to any dividend that the company pays, forever, but nothing else. The AC is entitled to everything else $($for example, if the assets of the company are purchased, the AC gets the entire purchase price$).$ Both the AC and the DC trade separately on the New York Stock exchange. In addition to buying and selling ACs and DCs on the open market, any investor at any time can send in $1$ share of MSXR to get the AC and DC$,$ or can send in one AC and one DC and get back a share of MSXR$.$ MSXR is currently trading at $$400,$ its dividend is paid annually, and is $$4\mathrm{.}00.$ The dividend is expected to grow at about $2\%$ per year. Current MSXR subordinated debt yields around $6\%.$ The company$$s cash flow is pretty strong and it$$s never cut its dividend. A$.$ Your credit analyst thinks the DC is the main instrument everyone is interested in$.$ She thinks this will be valued by the market like a fixed income instrument. Roughly speaking, what might this be worth? Why did you pick the inputs you picked? B$.$ What is the AC likely to be worth? Why? What forces the AC to be worth this price $($or anything at all$).$ C$.$ If a foreigner has to pay a $30\%$ withholding tax on dividends if they invest in MSXR$,$ would they be interested in this product? Would they want an AC or a DC$?$ Why? $$ D$.$ If MSXR changes in price, will that price change hit the mostly the AC or the DC or both? Why? What about when the company pays a dividend? $$ E$.$ You look at the DC right now and it$$s trading in$-$line with your estimates from A above. However, you notice that the AC is trading $$20$ below the value you would expect it to from part B above. What$$s a trade you can do to make money right now? $$ F$.$ IF Mutanto takes a $10\%$ of the dividend amount before it$$s paid $($i$.$e$.$ it would take $$0\mathrm{.}40$ and pay the DC $$3\mathrm{.}60),$ what happens to pricing of the AC and the DC$?$ Who pays for the fee?

Hello, based on gordan growth model it should be D$1$ and not D$,$ as such using $$4$ as dividends is incorrect. Can someone not use AI to do and someone who is really a finance professional to assist me with this? I want to tally my answers.