Red sea industries will pay a regular dividend of $1.9 per share for the next four years. At the end of the four year, the company will also pay out a $40 per share liquidating dividend, the company will cease operations. If the discount rate is 9 percent, what is the current value of the company stock?

b). in the previous problem, suppose the current per share is $80. If all other information remains the same, what must the liquidating dividend be?