2020 Seved 8 Problem 13-18 Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.20. Its projected earnings are $3 per share. Investors expect a 14% rate of return on the stock. a. At what price and P/E ratio would you expect the firm to sell? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) 16 points eBook Price PIE ratio Print References b. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO c. What would be the P/E ratio and the present value of growth opportunities If the firm planned to reinvest only 10% of its earnings? (Do not round intermediate calculations. Round your answers to 2 decimal places.) PE ratio PVGO