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Please explain c) thank you Laufs inc play in Northern Humour League (NHL). Joe is an ardent fan of Laufs. He currently owns 1,000 shares.

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Laufs inc play in Northern Humour League (NHL). Joe is an ardent fan of Laufs. He currently owns 1,000 shares. Laufs have 2 million shares outstanding. Last year, Laughs just paid 8 million dollars as dividend. Next year, desert dogs are going to move into a nearby town and Laufs will get a onetime payment of 100 Million dollars from NHL to compensate them for future loss of revenue. At time 1, Laufs will earn an additional $10 million from their current operations. After that, Laufs estimate that their earnings will decrease by 5% every year because of Desert Dogs. Laufs pay all of their earnings as dividends. Joe wants to liquidate his holdings in laufs inc in two years. However, he wants to get twice as much money at time one as compared to time two (i.e. his homemade dividend at time 1 should be twice as much as his homemade dividend at time 2). Joe uses a discount rate of 13% for Laughs Inc. c) How many shares he will sell at time 2? 3 Marks @ t=2 he is liquidating 946.07 shares

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