Marisol Mercantile can make only one investment so it wants to be sure that it chooses wisely. It can invest in Property A, which will cost $2,000,000 and will return $400,000 per year in years 5 through 10 and $500,000 in years 11 through 20. Property B will cost $2,500,000 and return $300,000 per year for the next 20 years. The cost of capital is 10%. Find which of the two investments Marisol Mercantile should make. (Note: You will be working with a deferred annuity for Property A. Years 5 -10 represent 6 years and years 11 - 20 represent 10 years.)

Alpine Industries has 10 million shares of stock outstanding and expects to report $35 million earnings this year. If it issues 2 million additional shares this year that will result in $4 million net earnings to the company, find (1) the earnings per share before the issuance of additional shares; (2) the earnings per share after the additional shares are issued; (3) any potential dilution of earnings per share