Little Oil has 1 million shares outstanding with a total market value of $20 million. The firm is expected to pay $1 million of dividends next year, and thereafter the amount paid out is expected to grow by 5% a year in perpetuity. Thus the expected dividend is $1.05 million in year 2, $1.1025 million in year 3, and so on. However, the company has heard that the value of a share depends on the flow of dividends, and therefore it announces that next year's dividend will be increased to $2 million and that the extra cash will be raised immediately afterwards by an issue of shares. After that, the total amount paid out each year will be as previously forecasted, that is, $1.05 million in year 2 and increasing by 5% in each subsequent year. a. At what price will the new shares be issued in year 1? (Do not round intermediate calculations. Round your answer to the nearest whole number.) b. How many shares will the firm need to issue? (Do not round intermediate calculations. Round your answer to the nearest whole number.) C-1. What will be the expected dividend payments on the new shares after year 1? (Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to the nearest whole number.) c-2. What will be paid out to the old shareholders after year 1? (Do not round intermediate calculations. Enter your answer in millions not in dollars. Round your answer to the nearest whole number.) d-1. What is the present value of the cash flows to current shareholders under the revised dividend policy? (Do not round intermediate calculations. Enter your answer in millions not in dollars. Round your answer to the nearest whole number.) d-2. Did the change in the dividend policy affect the present value of the cash flows to current shareholders? a. New share price b. Number of shares Total dividend on new shares 1. C- Total dividend on old shares 2. d- Present value 1. d- Did the change in the dividend policy affects the present value of the cash flows 2. to current shareholders? million million