C. Sea Gardens is a resort company with average risk. The industry average Price-earnings ratio (P/E) for resort companies is 13. If Sea Gardens has earnings per share (EPS) of $1.70, what would be a fair price for its shares? (5 marks)

D. Lynns Investments Limited does not currently pay dividends. However, investors expect that in five (5) years, the firm will pay its first dividend of $3.50 per share and will continue to grow at 10% in perpetuity. If investors require a 15% annual return on the shares, what should be the current price of Lynns Investments Limited shares to investors? (12 marks)