(20 points) 1. Use the following Discounted Cash Flow expression to price the common stock of a company whose cash flows are shown below. 5 CF r-g 1+r Present Value of first 5 years Present Value of years 6-infinity Years: 6-infinity 1 Year 2 Year 3 Year 4 19,000 $ 20,000 $21,000 $ 22,000 -RANDBETWEEN 22000 25000) Year 5 Year l CE Equity$ PY of CF (Equity PV of first five years PV of Terminal Valuc Ycars 6 to in fini SUM of al Present Values Number of Shares 2,000 Divide SUMotall Pys by Number of Shares to get: Price per share Beta- RANDBETWEEN(80,150)/100 E(Rm)= 0.123 Rr- 0.037 g-396 ER) Expected return cost of equity capital-R+ beta [E(Rm)-Rd (Security Market Line) (10 points) 2. Given the data for a firm below, calculate the missing figures (Show all your work): a. the Change in Net Working Capital b. Cash Flow to Equity