Local Pharmacy ABC generates $500M in net income. Every year previously the owners have paid themselves as a dividend the full amount of net income. Assuming a 40% cost of capital for similar, small size regional pharmacies, what is the value of the local pharmacy? _____________________________________________________________________________________________ Then, next year, the pharmacy is looking to expand by adding an express clinic. Owners expect that this venture will generate a 25% return and will require the reinvestment of $100M. What is the g _______________________________________________________________ What is the post investment value of Local pharmacy and explain why ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________