4. A stock promises to pay a constant annual dividend of two pesos per share forever. Suppose all investors pay a 40% tax on dividend income but there are no capital gains or other investment income taxes. The risk of the stock demands an 18% discount rate on its after-tax cash flow in the local stock market. a. Compute the price of this stock. b. Compute the price of the stock if the company suddenly changes its payout policy from a two peso dividend forever to a two peso per share repurchase every year