Correct! Question 2 10/10 pts Ernie Manufacturing has projected sales of $100.1 million next year. Costs are expected to be $90 million and net investment is expected to be $5 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price? $3.24 Correct!! $0.99 $2.98 $3.06 A B B 4. 5 Growth Rate Year 1 6 Number of Shares 5,500,000.00 7 3. 9 1 2 C Year 2 D 0.14 Year 3 E 0.12 Year 4 F G Year 5 0.10 0.08 Year 6 H 0.06