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The net income of Novis Corporation, which has 10,000 outstanding shares and a 100-percent payout policy, is $32,000. The expected value of the firm one

The net income of Novis Corporation, which has 10,000 outstanding shares and a 100-percent payout policy, is $32,000. The expected value of the firm one year hence is $1,545,600. The appropriate discount rate for Novis is 12 percent.

a. What is the current value of the firm?

b. What is the ex-dividend price of Novis's stock if the board follows its current policy?

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