Solomon, Inc. is planning to issue 20-year bonds which carry an interest rate of 6.00%, paid semi-annually. The bonds will sell for $1,000.00. There will be 15 warrants attached to each bond; otherwise the bonds would need to carry a coupon interest rate of 7.75%. The warrants will have an exercise price of $98.00 and they will expire in 10 years. The firm's common stock is presently selling for $75.00 per share and it pays a dividend of $3.50. The firm is growing at a constant rate of 8.00%.
What is expected capital gain of the common stock per share at the end of 10 years?