Problem 2 Investors estimate that Slender Burger's (SB) existing business generates $2.5 million in annual earnings every year for the foreseeable future (i.e., forever). SB has 2 million shares outstanding and its required rate of return is 15% (EAR). a) What would be the value of a single SB share if the company will not make any new investments and will pay out all its future earnings in dividends (next dividend is paid in one year from today)? b) Now suppose SB has the following investment opportunities (note, the management of SB will implement all positive NPV projects and will reject any negative NPV projects); Based on what you know about the above investment opportunities, how much would you be willing to pay for a share of SB today? Problem 2) a) What would be the value of a single SB share if the company will not make any new investments and will pay out all its future earnings in dividends (next dividend is paid in one year from today)? Select one: $1.50$2.50$12.50$8.33$25.00$10.83$9.58$16.67crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout Clear my choice Problem 2) b) Based on what you know about the two investment opportunities, how much would you be willing to pay for a share of SB today? Select one: $8.33$0.00$0.56$7.77$7.59$25.00$9.58$2.50crossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossoutcrossout Clear my choice