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3. Constant growth and P/E ratio. Acme Manufacturing Co. had EPS of $2.65 and paid $1.98 in dividends per share in the year just ended.

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3. Constant growth and P/E ratio. Acme Manufacturing Co. had EPS of $2.65 and paid $1.98 in dividends per share in the year just ended. Acme is expecting a growth rate of 3% in dividends forever. If the price is currently $48.32, what is the trailing P/E ratio? What is the forward P/E ratio? What is the expected return on Acme stock

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