Saskatchewan Steel, Ltd. and Alberta Copper, Inc. both recently announced earnings of $400,001. Both companies have common shares outstanding of 250,000 and rates of return of 10%. Saskatchewan Steel has a new project that will generate net cash flows of $50,000 per year forever. Alberta Copper has a new project that will generate net cash flows of $40,000 per year forever. The stock price of Saskatchewan Steel should be _______ greater than the stock price of Alberta Steel.

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The Answer of Saskatchewan Steel, Ltd. and Alberta Copper, Inc. both recently announced earnings of $400,001. Both companies have common shares outstanding of 250,000 and rates of return of 10%. Saskatchewan Steel has a new project that will generate net cash flows of $50,000 per year forever. Alberta Copper has a new project that will generate net cash flows of $40,000 per year forever. The stock price of Saskatchewan Steel should be _______ greater than the stock price of Alberta Steel.