1. a) A stream of cash flows that pays $2,000 at the end of year 1, $4,000 at the end of year 2, and $6,000 at the end of year 3. If the cash flows are discounted at 8% annually. Determine the total present value of this payment stream. (Hint: work out the PV of each cash flow). b) A firm will pay a big $4 dividend next year on its common stock, which is currently selling at $100 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever?