WinSome Inc. has two million shares outstanding and its current assets generate earnings of $2M forever, including the current year. The company wants to launch a new product this year, which will cost $1M initially and generate earnings of $0.5M forever. The firm pays out all its cash, except when it needs to use funds for investment. The cost of capital is 15% Earnings from current 2M 2M 2M 2M ssets Earnings from project $1M 5M 5M 5M otal Payout a) What is the stock price of WinSome today (at year 0)? 1M 2.5M 2.5M 2.5M Answer. Save my answers b1) WinSome wants to pay a special dividend of $0.5 per share this year. It will issue new equity to fund the payout. New shareholders don't get any dividends in year 0. How many shares will the company issue