Your Chief of Sales wants to create a new website with a store function included. Overall, he suggests, that the programming, the implementation and the needed hardware will costs about 1 Mio EUR. 1. What are the necessary questions you will ask him to figure out, that this investment is useful? Explain them carefully (30 Marks) 2. Your financial institution will charge you 3% interest rate for a loan with a runtime of 10 years. a. What are the monthly installments you would have to pay? (15 Marks) b. The net earnings on the P&L Side shows you, that your Net Profit is actually 11% on sales. How much must the yearly sales at least increase (in EUR), that the investment is valuable from your point of view (c.p.)? (10 Marks) 3. What alternatives do you have to finance that project? Carefully discuss advantages and disadvantages of the alternatives and come to a proper conclusion. (20 Marks) 4. How much does your share prices increases, if you do not pay out all your net earnings as a dividend to your investors, but plow back 40% to finance your investment. (Your company forecasts to pay a $8.33 dividend next year, which represents 100% of its earnings. This will provide investors with a 15% expected return. Instead, if you decide to plowback 40% of the earnings at the firms current return on equity of 25%.) What is the value of the stock before (10 Marks) and after the plowback decision?