3. PPG is expected to earn $4 per share in one year. The market demand for the new product is expected to be high so PPG decides to retain 60% of its earnings in year 1, 2, and 3. The reinvestments are expected to generate 10% return. Starting from year 4, PPG will maintain an 60% dividend payout rate because the investment return is expected to decline to 5% due to increased competition from similar products. (round to two decimal places for all the answers) a. What is the earnings growth rate for year 1 to 2. year 2 to 3, and year 3 to 4? b. What is the long term growth rate after year 4? c. Calculate the camins per share for year 1, 2, 3, 4, and S. d. Calculate the dividend per share for year 1.2.3.4, and S. e. If the cost of equity capital is 4% find the current share price. 1. PPG manager decides to try alternative valuation method based on multiples from the industry peers. The average forward PE ratio ieprice divided by carings in the coming year of the same industry is 30. What is should be the per share price of PPG based on the P/E ratio 3. PPG is expected to earn $4 per share in one year. The market demand for the new product is expected to be high so PPG decides to retain 60% of its earnings in year 1, 2 and 3. The reinvestments are expected to generate 10% return. Starting from year 4, PPG will maintain an 60% dividend payout rate because the investment return is expected to decline to 5% due to increased competition from similar products. (round to two decimal places for all the answers) a. What is the earnings growth rate for year 1 to 2. year 2 to 3, and year 3 to 4? b. What is the long term growth rate after year 4? c. Calculate the earnings per share for year 1, 2, 3, 4, and 5. d. Calculate the dividend per share for year 1, 2, 3, 4, and 5 e. If the cost of equity capital is 4%, find the current share price. f. PPG manager decides to try alternative valuation method based on multiples from the industry peers. The average forward P/E ratio fi.e., price divided by earnings in the coming year) of the same industry is 30. What is should be the per share price of PPG based on the P/E ratio? B D PPG is expected to em 54 per share in one year. The market demand for the new product is expected to be tugh so PPG decides to retain 60% of its eachings in year 1, 2 and 3. The vestments we expected to generate 10% reun Starting from yest 4, PPG will maintain an 60% dividend parout cate because the investment return is expected to decline to 5% due to mcreased competition from sumit products (sound to two decimal places for all the answers) What is the canings growth rate for year I to 2 year 2 to 3, and year 3 to 4 b. What is the long term growth rate after year * c. Calculate the tanings per shiste for rent 1, 2, 3, 4, and d Calculate the dividend per sbate for yeat 1, 23, 4, and 5 c. If the cost of equity capitalists find the cassent share ptice 1. PPG manager decides to try atemative valuation method based on multiples from the industry peers. The average forwaad P/E to price diided by earnings in the coming year of the same industris 30. What is should be the per share price of PPG based on the P/Esto 12:55 PM 3. PPG is expected to earn $4 per share in one year. The market demand for the new product is expected to be high so PPG decides to retain 60% of its earnings in year 1, 2, and 3. The reinvestments are expected to generate 10% return. Starting from year 4, PPG will maintain an 60% dividend payout rate because the investment return is expected to decline to 5% due to increased competition from similar products. (round to two decimal places for all the answers) a. What is the earnings growth rate for year 1 to 2. year 2 to 3, and year 3 to 4? b. What is the long term growth rate after year 4? c. Calculate the camins per share for year 1, 2, 3, 4, and S. d. Calculate the dividend per share for year 1.2.3.4, and S. e. If the cost of equity capital is 4% find the current share price. 1. PPG manager decides to try alternative valuation method based on multiples from the industry peers. The average forward PE ratio ieprice divided by carings in the coming year of the same industry is 30. What is should be the per share price of PPG based on the P/E ratio 3. PPG is expected to earn $4 per share in one year. The market demand for the new product is expected to be high so PPG decides to retain 60% of its earnings in year 1, 2 and 3. The reinvestments are expected to generate 10% return. Starting from year 4, PPG will maintain an 60% dividend payout rate because the investment return is expected to decline to 5% due to increased competition from similar products. (round to two decimal places for all the answers) a. What is the earnings growth rate for year 1 to 2. year 2 to 3, and year 3 to 4? b. What is the long term growth rate after year 4? c. Calculate the earnings per share for year 1, 2, 3, 4, and 5. d. Calculate the dividend per share for year 1, 2, 3, 4, and 5 e. If the cost of equity capital is 4%, find the current share price. f. PPG manager decides to try alternative valuation method based on multiples from the industry peers. The average forward P/E ratio fi.e., price divided by earnings in the coming year) of the same industry is 30. What is should be the per share price of PPG based on the P/E ratio? B D PPG is expected to em 54 per share in one year. The market demand for the new product is expected to be tugh so PPG decides to retain 60% of its eachings in year 1, 2 and 3. The vestments we expected to generate 10% reun Starting from yest 4, PPG will maintain an 60% dividend parout cate because the investment return is expected to decline to 5% due to mcreased competition from sumit products (sound to two decimal places for all the answers) What is the canings growth rate for year I to 2 year 2 to 3, and year 3 to 4 b. What is the long term growth rate after year * c. Calculate the tanings per shiste for rent 1, 2, 3, 4, and d Calculate the dividend per sbate for yeat 1, 23, 4, and 5 c. If the cost of equity capitalists find the cassent share ptice 1. PPG manager decides to try atemative valuation method based on multiples from the industry peers. The average forwaad P/E to price diided by earnings in the coming year of the same industris 30. What is should be the per share price of PPG based on the P/Esto 12:55 PM