1. (4 points) In 2020 , a year in which the firm's revenue increased, the firm's gross margin (gross profits/revenue) decreased but the firm's operating margin increased. What does this imply regarding the firm's performance in 2020? Be as specific as possible. ( 5 points) If the expected dividend payment in year 1 is $2.2/ share, in year 2 it is expected to equal $2.6/ share and then the expected future dividends are expected to increase at a constant rate of 3%/ year into perpetuity. Assume the cost of equity (ke) is 7%/ year. Provide an equation, including all inputs, to calculate the present value of the expected future free cash flows of this firm