Tiger Inc. is in the business of turning Gyumri’s waste into energy. It earns 10% book return on equity. At the end of the year, the business is expected to pay a $7 dividend. It has been reinvesting 20% of earnings and growing at 2% a year. (3 pts.) a. Suppose Tiger continues on this growth trend. What is the expected long-run rate of return from purchasing the stock at $100? What part of the $100 price is attributable to the present value of growth opportunities? b. Now the Tiger announces a plan for faster growth. Tiger’s plant will, therefore, be expanded gradually over three years. This means that tiger will have to reinvest 95% of its earnings for three years. Starting in year 4, however, it will be again able to pay out 80% of earnings. What will be Tiger’s stock price once this announcement is made?