19.14. The bet income of Novis Corp. is 585,000 . The company has 25,000 outstanding shares and a 100 percent payout policy. The expected value of the firm one year from now is $1,725,000. The approptiate discount rate for Novis is 12 pereent, and the dividend tax rate is zero. Assume the MM assumptions bold. a. What is the current value of the firm assuming the currest dividend has sot yet been paid? b. What is the ex-dividend price of Novis's stock if the boord follows its current polisy? a. At the dividend declaration meeting several board members clained that the dividend is boo meane and is probably depressing Novis's price. Tbey proposed that Nowis sell enough new shares to finance a $4,60 dividend. 1. Comment on the elsim that the low dividend is depressing the stock peice. Support your argumient wath calculations. Assume Noris will remain endirely financed with eqaity. It. If the proposal is adoped, at what peice will the new shares selir How mats will be sold