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You own 1,000 shares of stock in Tanzania Cigarette Company (TCC). You will receive a Tsh. 60 per share dividend in one year. In two

You own 1,000 shares of stock in Tanzania Cigarette Company (TCC). You will receive a Tsh. 60 per share dividend in one year. In two years, TCC will pay a liquidating dividend of Tsh. 3,000 per share. The required return on TCC stock is 15 percent. What is the current share price of your stock (ignoring taxes)? If you would rather have equal dividends in each of the next two years, show how you can accomplish this by creating homemade dividends. Hint: Dividends will be in the form of an annuity.

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