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(3 . ) 15 Points - You have just learned that Burger Records has purchased the lifetime distribution rights to the music of a new

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(3 . ) 15 Points - You have just learned that Burger Records has purchased the lifetime distribution rights to the music of a new band called The French Fries Based upon this good news you've estimated that Burger Records should earn $4 50 in profits per share next year . You also think that future profits should increase by 39% a year indefinitely . As a knowledgeable investor , you've determined that your required rate of return on an investment in Burger Records is 14.5 % ( a ) Estimate , via a calculation , the correct price of Burger Records common stock . ( 10 points ) ( b ) Estimate , via calculation . the correct price of the stock if you did not anticipate any increase in profits over time - ( 5 Points )

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