Samarahan Berhad stock is currently selling for RM38 per share. The company is expecting earnings of RM5 per share in the coming year. The required rate of return demanded by investors is estimated to be 14%. Assume that the company practices a dividend payout ratio of 40%. Now suppose that the company engages in in an all equity financed project worth RM100 million that generate a return on investment of 15% and that there are currently 3 million of the companys shares in issue. Compute the following:

1. The expected total earnings from the investment.
2. The earnings per share from the investment. Is the figure differs from the given figure above.
3. The expected dividend per share.
4. The dividend growth rate.
5. The value of the firms stock. Is the companys stock overvalued or undervalued? Justify.
6. The price-earnings ratio of this company.