Question: I need help and step by step instructions with explanations for finance study notes I don't understand. Problem is: you buy a stock which has

I need help and step by step instructions with explanations for finance study notes I don't understand.

Problem is: you buy a stock which has the following options:

Price is $500K

EPS is 33.3

Payout ratio is 25%

Projected EPS Growth is 15%

What will EPS have to be equal to in year 3 for you to get a 12% return on your investment?

What will the share be worth then?

OUR NOTES gives the correct answers, but I need to understand how they were reached and I don't.

The correct answers are: P/E = 13.1 V = $665

I don't understand how these were calculated, can you please explain step by step for me.. THank you

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