You want to invest in a stock that pays $6.00 annual cash dividend for the next 5 years. At the end of the five years, you will sell the stock for $30.00. If you want to earn 10% on your investment, what is a fair price to purchase the stock for today? (3 marks) Pink Panther Inc. common stock has a beta of 1.3, while the common stock of Atomic Ant Inc. has a beta of 0.75. The expected return on the market is 12% and the risk-free rate is 4%. According to the Capital-Asset Pricing Model (CAPM), what is the return on Pink Panther and Atomic Ant common stock respectively? (3 marks) Section 3 Answer all questions in this section (10 marks) Management is contemplating the purchase of a new oven which cost $25,000 with an estimated salvage value of zero. Expected before tax cash savings from the new oven are $4,000 a year over its full depreciable life. Depreciation is computed using straight line over a 5 year life, and the cost of capital is 10%. At the end of the oven's life, it can be sold for $2,000. Assume a 40% tax rate. What is the net present value of the new oven? IRR? (10 marks)