The JRN Corporation will pay a constant dividend of $3 per share per year in perpetuity. Assume that all investors pay a 25% tax on dividends and that there is no capital gains tax. The cost of capital for investing in JRN stock is 14%. The price of a share of JRN's stock is closest to A) $12.86 B) $19.29 C) $16.07 D) $32.14 Corporate Capital Ordinary Dividend Year Tax Rate Gains Rate Income Rate Rate 1997-2000 35% 20% 40% 40% 2001-2002 35% 20% 39% 39% 2003-2010 35% 15% 35% 15% In 2006, Luther Incorporated paid a special dividend of $7 per share for the 120 million shares outstanding. If Luther has instead retained that cash permanently and invested it into Treasury bills earning 5%, then the present value (PV) of the additional taxes paid by Luther would be closest to A) $235.20 million B) $588.00 million C) $294 million D) $42.00 million