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Castle, Inc. is expected to pay an annual dividend of $3 per share in 2 years time. If the dividend is expected to stay at

Castle, Inc. is expected to pay an annual dividend of $3 per share in 2 years time. If the dividend is expected to stay at $3 per year for the foreseeable future,

(a). what is the value of the stock today to an investor with a required rate of return of 10%? 8 marks

(b). If the share is selling for $30 per share, should the investor purchase this share and why? 2 marks

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