Company Q$$s current return on equity $($ROE$)$ is $14\%.$ It pays out $60$ percent of earnings as cash dividends $($payout ratio $=0\mathrm{.}60).$ Current book value per share is $$70.$ Book value per share will grow as Q reinvests earnings.

Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to $12\mathrm{.}5\%$ and the payout ratio increases to $0\mathrm{.}90.$ The cost of equity is $12\mathrm{.}5\%.$

What are Q$$s EPS and dividends in years $1,2,3,4,$ and $5?$

What is Q$$s stock worth per share?