1. A project is expected to generate the following cash inflows: C C2 CA Cs Cash inflow +1.75 +1.2 (S million) +1.10 +0.8 +0.5 What is the PV of the expected cash inflows today (that is at t=0)? The cost of capital is 12%. 2. Consider the following five stocks. a. Stock A is expected to pay a dividend of $2.50 per share forever, starting in one year. b. Stock B is expected to pay a dividend of $2.50 per share forever, starting today. c. Stock C is expected to pay a dividend of $1.70 in one year. Dividends are expected to grow at 3% per year forever. d. Stock D is expected to pay the following dividends: D. (dividend in one year) - $1.20, D2 = $1.60, D3 = $1.80, D. = $2.30. Thereafter dividends are expected to remain constant, and equal to $2.30, every year forever. a. Stock E is expected to pay a dividend of S1 per share in one year (t = 1), which is expected to grow at 10% for the following 5 years (the last time the dividend grows at 10% is from t = 5 tot = 6). Afterwards, the dividend is expected to grow at 2% per year forever. The cost of capital is 9.5%. Recall that, according to the Dividend Discount Model, the value of a stock is the present value of all future dividends. What is the value of each stock today, according to the Dividend Discount Model