1. Company X currently pays a yearly dividend of 0.50 per share and has R_S=14%. Company X is going out of business in two years, at which time Company Xs shareholders will receive a liquidating dividend of $85.00. If you instead wanted equal dividends spread out over these two years, which of the following is the closest to what these dividends be?

2. Company Z is proposing a rights offering. There are 200,000 shares outstanding trading at $25 each. There will be 10,000 new shares issued at a $22 subscription price. Suppose you do not want to buy additional shares of Company Z. Instead, you prefer to sell your right. What is your right worth (at a minimum) to another investor?

3. Company X has 10,000,000 shares outstanding and votes for board members according using cumulative voting. There are four board seats coming up for election. You are an activist investor and would like acquire enough shares to have one representative on the board. The stock currently is priced at $15.50 / share. About how much would you would need to spend, at the minimum, to guarantee that you are successful?