Problem #1 Agata Acini de Pepi Cuccina De Casa Magiara Corporation is a privately held company. The company expects the following free cash flows over the next three years: 2020 175,000 183,750 2021 $ 280,000 2022 Beyond 2022 the company expects a 4 % growth rate for cash flows. The company's cost of capital is 8% and there are bonds payable and preferred stock with valuations amounting to $1,500,000 and $265,000 respectively. In addition there are 85,000 common shares outstanding, Required: Based on the foregoing information compute the value of a share of Agata Acini de Pepi Cuccina De Casa Magiara Corp. common stock Problem #2 Sana Semolina, Inc. has common stock outstanding on which the following cash dividends per share have been paid over the last six years: 2014 $ 2.50 2015 $ 2.65 2016 $ 2.81 2017 $ 2.98 2018 $ 3.17 2019 $ 3.35 Similar risk investments earn 12 % Required: What is the most you would be willing to pay per share assuming the growth rate reflected by the above dividend history