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The risk-free rate is 3% and the expected return on the S&P 500 is 9%. Vistacorp has a beta of 1.5 and paid a dividend

The risk-free rate is 3% and the expected return on the S&P 500 is 9%. Vistacorp has a beta of 1.5 and paid a dividend of $4 this year (i.e. Year 0). If this dividend is expected to stay constant forever, answer the following (round to nearest percent):

(i) What fraction of Vistacorps current market value comes from dividends paid in years 1-10?

(ii) What fraction of Vistacorps current market value comes from dividends paid in year 11-20?

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