Question: Company Q's current return on equity (ROE) is 15%. It pays out 55 percent of earnings as cash dividends (payout ratio =0,55 ). Current book

 Company Q's current return on equity (ROE) is 15%. It pays
out 55 percent of earnings as cash dividends (payout ratio =0,55 ).

Company Q's current return on equity (ROE) is 15%. It pays out 55 percent of earnings as cash dividends (payout ratio =0,55 ). Current book value per share is $66. 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 12.0% and the payout ratio increases to 0.80 . The cost of equity is 12.0%. a. What are Q's EPS and dividends in years 1,2,3,4, and 5 ? b. What is Q's stock worth per share? Complete this question by entering your answers in the tabs below. What are Q ' EPS and dividends in years 1,2,3,4, and 5 ? Note: Da not, round intermediate calculations. Round your answers to 2 decimal places. What is Q's stock worth per share? Note: Do not round intermediate calculations. Round your answer ta 2 decimal piaces

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