The net income of Green plc is 65,000. The company has 25,000 shares outstanding and pays out all of its income as cash dividends. Green has an expected firm value of 1,835,000 in one year from now. The cost of capital is 12% per annum. Dividends are not tax deductible. What is the current value of Green assuming the current dividend has not yet been paid? What is the ex-dividend price of Green's stock if the board follows its current dividend policy? At the meeting to discuss dividend policy, several board members claimed that the dividend is too meagre and is probably depressing Green's stock price. They proposed that Green sell enough new shares to finance a 4.60 dividend. Comment on the claim that the low dividend is depressing the stock price. Support your arguments with calculations.