4-15 Two-stage DCF model Company Qs current return on equity (ROE) is 12%. It pays out 40 percent of earnings as cash dividends (payout ratio = 0.40). Current book value per share is $69. Book value per share will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 10.5% and the payout ratio increases to 0.70. The cost of equity is 10.5%. What are Qs EPS and dividends in years 1, 2, 3, 4, and 5? What is Qs stock worth per share