c). ALM Ltd currently operates three projects. The each project is expected to generate a cash inflow every year forever. The cash inflows of each project are given below: Project Alpha: $4 million per year Project Beta: $5 million per year Project Gamma: $6 million per year ALM Ltd has a cost of capital of 10% and 100 million shares issued. There are no taxes. i) ii) ALM pays out all of its cash flows as a dividend at the end of the year. How much will the shareholders dividend be this year? What will be the shareholders wealth at the end of this year (including the dividend)? iii) iv) v) ALM would like to increase the dividend by $0.40 and is considering issuing new shares to finance existing projects to free up capital to pay the higher dividend. If the cost of issuing new shares is 5%, demonstrate what impact this would have on shareholders wealth at the end of the year (note: new shareholders are not entitled to the dividend). ALM would like to increase the dividend by $0.40 and is considering liquidating one of its projects at the end of the year to finance the higher dividend. The company is able to sell projects for only 66.67% of their value. Demonstrate what impact this would have on shareholders wealth at the end of the year. What impact would either of these attempts to increase the dividend have upon shareholder wealth? Why?