A.1. INCARSA Corporation is in the business of selling and distributing computers. The firm has announced that it expects to pay a 2 dividend per share next year, a 3 dividend per share the year after and a constant dividend per share equal to 1.8 thereafter. The cost of capital for firms in this sector is 10% and the risk-free interest rate is 4.5%. (a) Compute the price at which shares of INCARSA Corp are expected to trade in the secondary market. (b) The firm has 2 million shares outstanding. Compute the capitalization of the firm. (c) Earnings for this year are expected to be 5,000,000. Compute the payout ratio and its earnings per share (EPS)