Megacapital Co. generates $5 per share in earnings and it has 1000000 shares outstanding. Since MegaCapital has no growth opportunities it pays out all of
its earnings as dividends. This situation is expected to last into the foreseeable future. Suppose that just as the new year starts a new unexpected
investment opportunity becomes available to MegaCapital. If MegaCapital invests it will need to pay $5 million at the end of the current year and will have
cash inflows of $4 million and $6 million at the end of the following two years. What is the price of a share in MegaCapital after investors find out about the
new investment opportunity? (Assume that the appropriate required rate of return for MegaCapital and its new project is 10%.)