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Bruin Inc. will have earnings of $15 million next year and is projected to grow at...

Bruin Inc. will have earnings of $15 million next year and is projected to grow at a constant rate of 6 percent forever. All earnings are paid out as dividends to shareholders.

The company plans to launch a new project three years from now that will cost $10 million. The project will increase the firm's annual earnings by a constant $8.3 million every year forever starting one year later (i.e. 4 years from now).

What is the market value of the company stock? The discount rate is 9.7 percent.

Select one:

a. $481 million

b. $57 million

c. $212 million

d. $169 million

e. $463 million

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