1. Andover Inc., had a current share price of $34, and the firm had 5,000,000 shares of stock outstanding. The company is considering an investment project that requires an immediate $62,000,000 investment but will produce a stream of cash flow of $35,000,000 each year over the next 3 years then close. There is no salvage value. If Andover invests in the project, what would the new share price be? Andover's cost of capital is 12%. (Hint: consider how the project NPV affects the stock price)

a. $42.06

b. $43.80

c. $38.41

d. $37.27

e. $35.63

2. Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

a. $52.81

b. $39.15

c. $45.53

d. $47.80

e. $40.06

Please show either excel formula or calculations