Question 2: Dividend Re-investment (35 points) Assume that it is December 8, 2023. Jennifer's current investment fund is offering a special deal for the coming year: if she invests a new amount every month into TMBR International, the investment fund will waive all their fees. TMBR will give out $0.50 monthly dividends starting 1/8/24, and this dividend will grow at a rate of 1.2% per subsequent month. Jennifer wants to understand if this investment is worth it by using the NPV rule. As she runs a catering business, her income fluctuates month to month. Based on past income patterns, her projected disposable monthly income for the coming year looks as follows: If she goes through with the investment, Jennifer will invest 40% of her projected disposable income every month. Moreover, when she receives dividends from her shares each month, she will re-invest them into TMBR International. Finally, Jennifer has a comparable investment opportunity that will yield 3% monthly. For parts a) f ) consider only the future value of money. a) (1 points) Find the monthly value of how much she will be investing between 12/8/23 and 11/8/24. b) (7 points) Jennifer wants to understand how many new shares of TMBR international she can purchase today, on 12/8/23. i. Find the share price of TBMR on 12/8/23. ii. Find the Jennifer's dividend income 12/8/23. Hint: If she has not purchased any shares yet, will she receive dividend income? iii. What is Jennifer's investment from her disposable income on 12/8/23? iv. Calculate the total amount invested on 12/8/23. Hint: Jennifer will invest the 40% of her disposable income, plus re-invest her dividends v. How many shares of TMBR does Jennifer currently own? Hint: If she has not purchased any shares yet, how many shares does Jennifer currently own? vi. How many new shares can Jennifer purchase using the total amount invested found in iv? vii. Finally, if she goes through with purchasing the shares in vi., how many shares in total does Jennifer now own? c) (8 points) Assume Jennifer went through the process of purchasing the number of shares found in b) part vii. It is now 1/8/24. i. What is the dividend per share of TMBR on 1/8/24 ? ii. Find the share price of TBMR on 1/8/24. iii. Find the Jennifer's dividend income on 1/8/24. iv. What is Jennifer's investment from her disposable income on 12/8/23? v. Calculate the total income invested on 12/8/23. Hint: Jennifer will invest the 40% of her disposable income, plus re-invest her dividends vi. How many shares of TMBR does Jennifer currently own? vii. How many new shares can Jennifer purchase using the total invested amount found in iv? viii. Finally, how many shares in total does Jennifer now own? d) (4 points) Using the process detailed in part c), parts i. through viii, complete the table for dates 2/8/24 to 11/8/24. e) ( 2 points) Find the dividend per share, share price and dividend income on 12/8/24. f) (2 points) If Jennifer sells all her accumulated shares on 12/8/24, what is her total cash flow? Hint: Make sure to include the dividend income Jennifer retains on 12/8/24. g) (5 points) Assume we are once again in the present, 12/8/23. Find the present value of Jennifer's future value of total income invested into TMBR, using i. the manual method, of discounting future monthly new income invested, and ii. the method using the NPV excel formula. Hint 1: For total income invest, which column from parts b) through e) should you use? Hint 2: Your answers for parts i. and ii. should match. h) (3 points) Again, assume we are in the present on 12/8/23. Find the present value of Jennifer's total cash inflow on 12/8/24. i) (3 points) If Jennifer follows the NPV rule, would she decide to accept her investment fund's special TMBR International deal? Why or why not