1.) Frump Real Estate Inc expects to earn $100 MM per year in perpetuity if it does not undertake any new projects. The firm has an opportunity to invest $15 MM today and $5MM in one year in real estate. The new investment will generate annual earnings of $10 MM in perpetuity, beginning two years from today. The firm has 20 MM shares outstanding, and the required rate of return on the stock is 15%. Land investments are not depreciable. Ignore taxes. a.) What is the price of a share if the firm does not undertake the new investment? b.) What is the price of a share if the firm undertakes the new investment? 2.) A stock is selling at $50 per share with an expected dividend of $2. Short term prospects are excellent: a 20% annual growth rate is expected for the next 4 years. After that, the growth rate is expected to drop to a normal 6%. What is the expected long term rate of return from this stock