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Screen Shot 2018-12-11 at 4.43.56 PM.pngWhat equation(s) do I use to

go about solving this problem and what numbers do I plug in where? I am lost.

Screen Shot 2018-12-11 at 4.43.56 PM.png

(3 . ) 15 Points - You have just learned that Burger Records has purchased the
lifetime distribution rights to the music of a new band called The French Fries
Based upon this good news you've estimated that Burger Records should earn
$4 50 in profits per share next year . You also think that future profits should
increase by 39% a year indefinitely . As a knowledgeable investor , you've
determined that your required rate of return on an investment in Burger Records
is 14.5 %
( a ) Estimate , via a calculation , the correct price of Burger Records common
stock . ( 10 points )
( b ) Estimate , via calculation . the correct price of the stock if you did not
anticipate any increase in profits over time - ( 5 Points )

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