Expert Q&A Done Company Q's current return on equity (ROE) 12%. The firm pays out 40 percent of its earnings as cash dividends (payout ratio 40). Current book value per share is 569 Book value per share will grow as reinwests earings Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 10 54 and the payout ratio increases to 70. The cost of capitalis 10 M What are Q's EPS and dividends in years 1. 2. 3. 4. and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places) EPS 1 2 $ 3 $ 4 $ b. What is 's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places) Company Q's current return on equity (ROE) is 12%. The firm pays out 40 percent of its earnings as cash dividends. (payout ratio = .40). Current book value per share is $69. 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 10.5% and the payout ratio increases to 70. The cost of capital is 10.5%. a. What are Q's EPS and dividends in years 1, 2, 3, 4, and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year 1 EPS 8.88 2 $ 9.52 10.2 Dividends 3.55 3.8 4.08 4.37 3 $ 4 10.94 5 b. What is Q's stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock worth per share $