You own 1000 shares of stock in Avondale corporation. you will receive a $1.85 per share dividend in one year. In two years, Avondale will pay a liquidating dividend. the liquidating dividend amount is calculated assuming a free cash flow of $3.5 per stock that could otherwise be generated using Avondale's existing assets. The free cash flow of $3.5 grows at a constant rate of 7%. Assume the required return is 13%.

a) Ignoring taxes, what is the current share price of your stock?

b) If you would rather have equal dividends in each of the next 2 years, how many shares would you sell in one year?

c) What would your cash flow be for the next two years?