Sooner$-$than$-$Later $($STL$)$ Inc. announces that it will pay a $$75$ per dividend next

year, followed by a final dividend of $$30$ per share in the year after. Mrs$.$

Donna Holder has $50$ shares in STL Inc. She wishes to limit her income from

investments to no more than $$35$ in the first year. Demonstrate through relevant

computations, how she can achieve this goal through homemade dividends if the

required return on STL Inc$$s shares is $9\%.$ What will be Mrs$.$ Holder$$s earning

in the second year? Show detailed workings in support of your response.