Company Q$\text{'}$s current return on equity $($ROE$)$ is $13\%.$ It pays out $45$ percent of earnings as cash dividends

$($payout ratio $=0\mathrm{.}45).$ Current book value per share is $$58.$ 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 $11\mathrm{.}0\%$ and the payout ratio increases to $0\mathrm{.}80.$ The cost of equity is $11\mathrm{.}0\%.$

a$.$ What are Q$\text{'}$s EPS and dividends in years $1,2,3,4,$ and $5?$

b$.$ What is Q$\text{'}$s stock worth per share?

Complete this question by entering your answers in the tabs below.

What are Q$\text{'}$s EPS and dividends in years $1,2,3,4,$ and $5?$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.