Terrapin Flyer Inc. manufactures city buses tits plant in Wichita, Kansas. Terrapin has $1,000 of cash and its operations produce $100 of free cash flow per annum. Assume that cash flows are generated at the end of each year, we are currently at the beginning of the year, and that the cash flows from operations are a level perpetuity. Terrapin has 1,000 shares outstanding, it is all-equity financed, and shareholders require a return of 8%. Use this information to answer the following questions. PART 1: What is the fair price for the stock? Round your answer to the nearest cent. $ PART 2: Terrapin Flyer is planning to pay a special dividend of $1 per share. What will the stock price be on the ex-dividend day? Round your answer to the nearest cent. PART 3: Jack Straw owns 100 shares of Terrapin Flyer. What is his wealth after the dividend (shares and cash)? $ Check Answer Check Answer Check