Problem 4 Your client has asked you for advice on the following two investments: Purchase 2000 shares of common stock or receive real-estate income as follows: End of year 1 2 Real Estate Cash Flows $38,155 $48,020 $92,100 3 The common stock pays no dividends for two years; it is anticipating the firm will begin paying a $3 dividend in the third year and the dividend will grow at 6.6%. Investors demand a 10% return from this stock. The real estate investments yields 14%. What is the value of each investments