This problem contains 5 questions: A toy manufacturer is undertaking new projects to expand its sales region.

This problem contains 5 questions:  A toy manufacturer is undertaking new projects to expand its sales region. Available investment opportunity required the firm to invest $3,000,000 that will generate $4,275,000 in the next year. Due to having great investment opportunity, current value of this firm increases to $5,750,000. The firm's required rate of return is 14% and it has initial fund of $5,000,000. Under two-period perfect certainty model:

(a) Net present value of the investment =  

(b) The value of the firm before the investment decision is made = 

(c) Dividends the firm would pay today = 

(d) Dividends the firm would pay next year = 

(e) Present value of the firm =