The Stocking Corporation has just paid a $3 dividend on each share of its stock. The company managers announced to their investors of their plan to continue growing which would allow the company to pay future dividends that will be increasing at a stable 6% annual rate. The required rate of return for this company is 10%.

If you buy shares of such stock today, the fair market price per share will equal $.

(b) If, after buying shares of such stock today, you then decide to sell them after 4 years, the fair market price per share at that time will equal $

Bells & Whistles Corporation is interested in a 5-year expansion project that would increase the variety of its bells and whistles supplied to the market. If the decision to accept the project is made, the company would need to immediately spend $2,000,000 to buy additional production equipment. This equipment will be losing the same amount of value over its 5-year economic life. The company's calculations show that the project should be able to bring $1,300,000 in sales revenues every year, with annual production costs of $850,000. The net working capital would also immediately need to be increased by $420,000. The purchased equipment should be able to sell for $550,000 when the project ends. The company faces the corporate income tax rate of 30%, and the appropriate discount rate is 13%.

Answer the following two questions.

The projects estimated Year 0 total cash flow equals $ Year 0 cash flow = 2,420,000Year 0 cash flow = 2,000,000Year 0 cash flow = 1,580,000Year 0 cash flow = 2,000,000Year 0 cash flow = 2,420,000Year 1 cash flow = 478,500Year 1 cash flow = 435,000Year 1 cash flow = 348,000Year 1 cash flow = 15,000Year 1 cash flow = 72,000.

(b) The projects estimated Year 1 total cash flow equals $