You own $100,000 worth of Stock X. At the end of the first year you receive a dividend of $2 per share and at the end of the second year you receive a dividend of $4 per share. At the end of year 3 you sell the stock for $50 per share. The required rate of return is 15%.
a. If there are no taxes, how many shares do you own?
b. If there is a tax on dividends of 28% and no capital gains tax, how many shares do you own?