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Sooner - than - Later ( STL ) Inc. announces that it will pay a $ 7 5 per dividend next year, followed by a

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 per share in the first year. Demonstrate through relevant computations, how she can achieve this goal through homemade dividends if the required return on STL Incs shares is 9%. What will be Mrs. Holders earning in the second year? Show detailed workings in support of your response.

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