You own 1,100 shares of Avondale Corporation. You will receive a dividend of $1.50 per share in one year. In two years, Avondale will pay a liquidation dividend of $45 per share. The required return on Avondale stock is 20 percent.

Ignoring taxes, what is the current price of its shares?

If you preferred to have equal dividends in each of the next two years, how many shares would you sell in one year?

What would your cash flow be for each year for the next two years if you created equal home dividends? Tip: Dividends will be in the form of an annuity.