Rite Bright enterprizes seils tooth picks. Total earnings of $9.50 per share can continue forever even without growth. The company currently has determined there is no growth in the toothpick market so will pay out all earings as dividends. However, they have discovered a new business project that will have an initial cost of $3.10 but increases eamings in the next three years by 5200, 52.25 and $250 respectively in each of the three years. Investors require a 10% return on Rite Bright stock a) What is the value per share of the company's stock assuming the firm does not undertake the investment 3 marks) b) If the firm undertakes the investment what is the net present value of the growth opportunity 15 marks) What would the value of the stock be with the growth opportunity (2 marks)