Luna Enterprises sells Burrata. Gross revenues last year were $$3$ million, and total costs were $$1\mathrm{.}5$ million. Luna has $1$ million shares of common stock outstanding. Gross revenues and costs are expected to grow at $5$ percent per year. Luna pays no income taxes, and all earnings are paid out as dividends.

a$.$ If the appropriate discount rate is $15$ percent and all cash flows are received at year$$s end, what is the price per share of Luna stock?

b$.$ The president of Luna decided to begin a program to produce bocconcini $.$ The project requires an immediate outlay of $$15$ million. In one year, another outlay of $$5$ million will be needed. The year after that, net cash inflows will be $$6$ million. This profit level will be maintained in perpetuity. What effect will undertaking this project have on the price per share of the stock?