Highrisk, Inc. currently has a total market value of $100 million, no debt, and 10 million shares outstanding. The firm is expected to pay $20 million of dividends next year, Year 1, and thereafter the amount paid out is expected to grow by 10% a year in perpetuity.

I) What is the current share price?

II) What is the implicit discount rate, r, on equity?

	a.	I) $10 per share; II) 30.0%
	b.	I) $5 per share; II) 35.0%
	c.	I) $20 per share; II) 25.0%
	d.	I) $10 per share; II) 10.0%