5 Permian Partners (PP) produces from aging oil fields in west Texas. Production is 1.81 million barrels per year in 2018, but production is declining at 8% per year for the foreseeable future. Costs of production, transportation, and administration add up to $25.10 per barrel The average oil price was $65.10 per barrel in 2018. PP has 7.1 million shares outstanding. The cost of capital is 10%. All of PP's net income is distributed as dividends. For simplicity assume that the company will stay in business forever and that costs per barrel are constant at $25.10. Also, ignore taxes. a. Assume that oll prices are expected to fall to $60.10 per barrel in 2019, $55.10 per barrel in 2020, and $50,10 per barrel in 2021 After 2021, assume a long-term trend of all price increases at 6% per year. What is the ending 2018 value of one PP share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sted Shote ile 2016 b-1. What is PP's EPS/P ratio? (Do not round Intermediate calculations. Round your answer to 4 decimal places.) Prati b-2. Is it equal to the 10 cost of capital? Yes NO