31a) You're interested in LoRa's common stock. You view the firm as having two different patterns of cash flows in the future which you think of as stage 1 and stage 2. In the first stage, which lasts until 8 years from today, you expect the firm to pay no dividends. During this first stage, you expect earnings to grow from their current level at a rate of 8.4% per year. The firm recently announced earnings per share for the prior 12 months of $4.91 per share.Beginning 8 years from today, you expect the second pattern (stage) of cash flows to begin. During this second stage, the firm is expected to have a constant ROE of 9% per year, and a constant Payout Ratio of 23%. The first dividend will be paid 9 years from today (from annual earnings ending 9 years from today). Based on the stock's risk, you've estimated that the fair discount rate for the stock is 11.7% per year, when measured as an EAR. You have been asked to determine the terminal P/E ratio (i.e. at the end of the first stage, at t = 8), using the following year's earnings. Provide an answer with at least 4 digits of precision.

B) Stock Z pays annual dividends. Its next dividend of $2.56 per share is expected in one year. Dividends are expected to grow at an annual rate of 6% per year forever. The stock is currently trading at $49.89 per year. If you bought the stock and held it forever, what annualized IRR would your earn?

Provide an answer as a percentage, not as a decimal, using at least 4 digits of precision.