Question 120 points Baltimore Bridge Restoration Corp. (BBR) has current earnings of $6 per share, and it just paid its annual dividend. The company is developing a new piece of equipment that would be able to quickly repair collapsed bridges. BBR's discount rate is 10%. a. Assume that BBR will reinvest two-fifths (2/5) of its earnings in developing the equipment and pay the remaining (3/5) fraction of its earnings as a dividend. What is the value of BBR if its ROE is 12%? (12 points) b. What would be the value of BBR if instead its $6 dividend were expected to grow at 8% per year for the next two years and 4% per year thereafter? (8 points)