#7. Special Info Inc. just reported earnings of $1.5 million. The rm will retain 40 percent of its earnings. The historical return on equity is 15 percent, and this gure is expected to continue into the future. The rm has 300,000 shares outstanding. The appropriate discount rate on the stock is 13 percent. (a) What is the firm's growth rate of earnings? (b) What is the price of the stock? (c) The rm has an opportunity to invest in a new project. The project requires an additional investment of $1.2 million today and it will generate additional earnings in the next 10 years. The rst additional earnings of $0.3 million will begin one year from now and grow at a 10 percent each year thereafter. Calculate the NPV of the new project. ((1) What will the stock price be if the rm undertakes the new project