An analyst knows with certainty that Skipper Inc. will exist for two years and have the following cash flows per share: Year 1 Year 2 Revenue $100 $100 Costs $ 80 $ 80 New Cash Flow $ 20 $ 20 Suppose that Skipper Inc. purchases workers compensation insurance to cover the costs of medical expenses and lost wages. The premium for full coverage is $0.555 per share. What is the stock price? Compare your answer to that obtained in the previous question. 1) What is the stock price of Skipper Inc., if the opportunity cost of capital is 8 percent? 2) The analyst in the previous problem realizes that Skipper Inc.s costs may not be $80 per share with certainty. Instead, each year there a 10 percent change that a worker will be seriously injured and Skipper will have to pay the employees medical costs and lost wage. If an injury does occur, Skippers costs equal $85 per share. If an injury does not occur (which has a probability of 0.9), the Skippers costs equal $79.445 per share. A) What is Skippers expected net cash flow in each year? B) If the opportunity of capital is 8 percent, what is the stock prices? C) Provide an argument for why the opportunity cost of capital should not change because of the risk of work injury D) Suppose that Skipper Inc. purchases workers compensation insurance to cover the costs of medical expenses and lost wages. The premium for full coverage is $0.555 per share. What is the stock price? Compare your answer to that obtained in the previous question.