QUESTION 3 (20 MARKS) a) Simone Smith is an analyst at NCB, she knows with certainty that XY'Z Corporation will exist for three years and have the following cash flows per share: Year 1 Year 2 Year 3 Revenue $300 $300 $300 Costs $260 $260 $260 Net cash flows $40 $40 $40 What is the stock price of XYZ Corporation if the opportunity cost of capital is 5.5 percent? (3 marks). b) Using the information from the table in part (a) above, Miss Smith realizes that XYZ Corporation's costs may not be $260 per share with certainty. Instead, each year there is a 10 percent chance that a worker will be seriously injured and that XYX will have to pay