FINA550: Week 5 Homework (20 points) For TVM function, clearly write both unknown and the remaining known variable (even if it is zero) such as "Unknown: PV Known variables: N=; I/Y=; PMT=; FV=; CPT PV = XX" For CF worksheet, clearly write the inputs (including the value, sign, and frequency) for each cash flow such as "CF0 = XX, C01 = XX, F01 = XX, C02 = XX, F02 = XX, ..., I=XX solve for NPV = XX" 1. (4 points) Suppose you expect Koch Industries to pay an annual dividend of $2.31 per share in the coming year and to trade $82.75 per share at the end of the year. If Koch's stock has a cost of equity of 8.9%, what is the maximum you would be willing to pay for a share of Koch's stock? It is required to show your work using CF Worksheet inputs in a financial calculator. No points will be given if you use formulas. 2. (4 points) Baxter Corp. is expected to earn an EPS of $8 per year for the next five years and maintain a 50% payout ratio. You expect to sell Baxter stock for $60 per share in five years