a) The company is planning to issue 1 million shares at the price of $90 per share. It is expected that at the end of one year, the company will pay a dividend of $6.30 per share and the oneyear target share price will be $99 per share. What expected rate of return can you declare to potential investors? Would you invest in this company if opportunity cost of capital on the project with the same level of risk is equal to 13% ? What is the opportunity cost of capital is 20% ? Critically discuss your answer. (10 marks) b) The company forecasts to pay a $6 dividend next year, which is 100% of earnings. This will provide investors with a 10% expected return. Instead, you are exploring the opportunity to plow back 30% of earnings at firm's current return on equity (ROE) of 12%. By critically evaluating the two options, advise the CEO of the company. (10 marks)