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You own $ 1 0 0 , 0 0 0 worth of Smart Money stock. At the end of the first year you receive a

You own $100,000 worth of Smart Money stock. At the end of the first year you receive a
dividend of $2 per share; at the end of year 2 you receive a $4 dividend. At the end of year
3 you sell the stock for $50 per share. Only ordinary (dividend) income is taxed at the rate
of 28 percent. Taxes are paid at the time dividends are received. The required rate of return
is 15 percent. How many shares of stock do you own?

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