Problems 3 and 4 refer to Softek Inc., a leader in the computer software field. Softek has two potentially big-selling products under development. Alpha, the first new product, seems very likely to catch on and is expected to drive the firm's growth rate to 25% for the next two years. However, software products have short lives, and growth can be expected to return to a more normal rate of 6% after that period if something new is not launched immediately Beta, the second product, is a logical follow-up, but management is not as confident about its success as it is about Alpha's. Softek's most recent yearly dividend was $4.00, and firms in the industry typically return 14% on stockholder investments. 3. You are an investment analyst for a brokerage firm, and have been asked to develop a recommendation about Softek for the firm's clients. You have studied the fundamentals of the industry and the firm, and are now ready to determine what the stock should sell for based on the present value of future cash flows. Calculate the value for Softek's stock assuming product Alpha is successful but Beta is not. In other words, assume two years of growth at 25% followed by 6% growth lasting indefinitely. 4. Calculate the value for Softek's stock assuming that Alpha is successful and Beta is successful, but does not do quite as well as Alpha does. Assume that Softek grows at 25% for two years and then at 18% for two more. After that it grows at 6% indefinitely. (A time line is a must for this problem.)