Paragraph A: Qia Company has properties that currently produce annual profits of $1,100,000. The properties are expected to produce average annual profits of $820,000 in real terms forever. Qia has no depreciable assets, so the annual cash flow is also $820,000. Qia is an all- equity firm with 385,000 shares outstanding. The appropriate discount rate for its stock is 16%. Qia has an investment opportunity with a gross present value of $1,900,000. The investment requires a $1,400,000 outlay now. Qia has no other investment opportunities. Assume all cash flows are received at the end of each year. 2. Refer to paragraph A. What is the value of Qia? a) $5,625,000 b) $5,205,450 c) $6,110,050 d) $6,406,300 3. Refer to paragraph A. What is the price per share of Qia? a) $15.90 b) $10.92 c) $14.61 d) $13.30