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1. Teller Pen is engaged in the manufacture of mechanical pens and pencils, porous pens, and a recently developed line of disposable lighters. Since the firm sells to a great many distributors, and itsproducts are all considered nondurable consumer goods, sales are relatively stable. The currentprice of the company's stock, which is listed on the New York Stock Exchange, is $25. The most recent earnings and dividends per share are $3.10 and $1.50, respectively. The rate of growth insales, earnings, and dividends in the past few years has averaged 5 percent. Teller Pen has total assets of $400 million. Current liabilities, which consist primarily of accounts payable and accruals,are $28 million; long-term debt is $83 million; and common equity totals $289 million. An additional $33 million of external funds is required to build and equip a new disposable-lighter manufacturing complex in central Ohio and to supply the new facility with working capital