1. Your mini-case report should answer the following questions: Which rate of return should be used as the correct discount rate to value the stock and why? (See the textbook discussion of required return on pg. 204-205 and 210.)

2. If Prairie Home did go public, what should its shares sell for? Calculate the stock price under the two projected investment and growth scenarios (rapid growth vs. constant growth).

3. Which investment plan do you recommend? Was Mr. Breezeway right in advising his relative not to sell for $200, the current book value per share?