Problem $10-34($Algo$)$ Common stock value based on PV calculations $[$LO$10-5]$

Martin Office Supplies paid a $$7$ dividend last year. The dividend is expected to grow at a constant rate of $7$ percent over the next four years. The required rate of return is $15$ percent $($this will also serve as the discount rate in this problem$).$ Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

If current EPS were equal to $$7\mathrm{.}25$ and the P$/$E ratio is $1\mathrm{.}3$ times higher than the industry average of $10,$ what would the stock price be$?$

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

By what dollar amount is the stock price in part g different from the stock price in part f$?$

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

With regard to the stock price in part f$,$ indicate which direction it would move if:

$1)$ D$1$ increases:

$2)$Ke Increases

$3)$g increases