Lewin Skis, Inc., (today) expects to earn $17.00 per share for each of the future operating periods (beginning at Time 1), if the firm makes no new investments and returns the earnings as dividends to the shareholders. However, Clint Williams, president and CEO, has discovered an opportunity to retain and invest 20 percent of the earnings beginning three years from today. This opportunity to invest will continue for each period indefinitely. He expects to earn 12 percent on this new equity investment, the return beginning one year after each investment is made. The firms equity discount rate is 18 percent. a. What is the price per share of Lewin Skis, Inc., stock without making the new investment? (Round your answer to 2 decimal places. (e.g., 32.16))

A)

What is the price per share of Lewin Skis, Inc., stock without making the new investment? (Round your answer to 2 decimal places. (e.g., 32.16))

B)

If the new investment is expected to be made, per the preceding information, what would the price of the stock be now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))