Consider a company that pays out all its earnings. The required return for the firm is 13

Question:

Consider a company that pays out all its earnings. The required return for the firm is 13 percent.
a. Compute the intrinsic P/E value of the company if its ROE is 15 percent.
b. Compute the intrinsic P/E value of the company if its ROE is 20 percent.
c. Discuss why your answers to parts (a) and (b) differ or do not differ from one another.
d. Suppose that the company's ROE is 13 percent. Compute its intrinsic P/E value.
e. Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.