The Stambaugh Corporation currently has earnings per share of $10.20. The company has no growth and pays out all earnings as dividends. It has a new project that will require an investment of $2.75 per share in one year. The project is only a two-year project, and it will increase earnings in the two years following the investment by $3.55 and $3.85, respectively. Investors require a return of 14 percent on Stambaugh stock.

a. What is the value per share of the company's stock assuming the firm does not undertake the investment opportunity?

Value per share $