Company B just paid a dividend of $30,000. The company will
decrease its dividend by 50 percent next year and will then
increase its dividend growth rate by 100 percentage in year after
next year. The growth rate would be 10% in third and fourth year,
and will keep a constant growth rate of 3% forever. The market
value of debt is $100,000. If the required return on the stock is
14 percent, and the number of share is 2,000,...