2. You own 1,000 shares of stock in Cascadia Ltd. You will receive a $3.00 per share liquidating dividend in year one. In two years Cascadia will pay a liquidating dividend of $45 per share. The required return on Cascadia is 12%. a. What is the current share price of this stock (ignoring taxes) b. If you would rather have dividends in each of the next two years, show how you can accomplish this by creating homemade dividends. Hint: dividends will be in the form of an annuity. 1