Realm expects earnings per share of $7.20 next year. Mayne Payne, CEO, has discovered an opportunity to retain and invest 60% of the earnings. Mayne expects a 15% return on equity (ROE). The firm's required return is 12%. 

a. Estimate the price per share of Realm. Will the PVGO be positive or negative? Explain. 

b. Realm has revised estimates. Analysts are predicting an 11% per year growth in dividends over the next 3 years. After that, dividends will grow at the current industry average of 5% per year. 

Estimate the share price with the new information.