Show how you might go about creating an artisanal dividend


Problem

You own 1,250 shares of Metaphysics inc. You will receive a dividend of 35 cents a share a year from now. In two years, Metaphysics inc. will pay a liquidation dividend of $20 per share. The required return on the shares of the company is 14%. What is your current stock price (without taxes)? If you instead want to receive an equal dividend for each of the next two years, show how you might go about creating an artisanal dividend.

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Finance Basics: Show how you might go about creating an artisanal dividend
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