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I have a written assignment this week.

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I have a written assignment this week. (Attached) And I am so confused
I don’t even know where to start. I believe I am supposed to be using the Gordon Growth Model for this problem but I am not sure. I am struggling with the math aspect of this class.

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FINC 340: INVESTMENTSUNIT #3 WEEKLY WRITTEN ASSIGNMENTDIRECTIONS: Here is the Unit #3 Weekly Writing Assignment that you shouldsubmit to your Unit #3 Homework Assignment Folder.Please submit your Unit #3 Writing Assignment Answer Sheet in MS Word formatwith the following file name: LastNameFirstInitial_Unit 03_Writing Assignment.docx.For example, if you name is John Smith, the file name should beSmithJ_Unit03_Writing Assignment.docx.If you have any questions or comments, please do not hesitate to contact me.NAME: _____________________________________Lincoln Umbrellas, Inc. today expects to earn $8.50 per share for each ofthe future operating periods (beginning at Time 1), today if the Frms makes nonew investments and returns the earnings as dividends to the shareholders.However, Brian Jones, president and CEO, has discovered an opportunity toretain and invest 20 percent of the earnings beginning three years from today.This opportunity to invest will continue for each period indeFnitely. He expectsto earn 10 percent on this new equity investment, the return beginning oneyear after each investment is made. The Frm’s equity discount rate is 12percent.A. What is the price per share of Lincoln Umbrellas, Inc. stock withoutmaking the new investment?B. If the new investment is expect to be made, per the precedinginformation, what would the price of the stock be now?
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