6. Firm ISOM has an ROE of 16% and a plowback ratio of 50%. The coming year's earnings are expected to be $2 per share. The required rate of return is 12%. a. What is the current fair price? b. What price do you expect ISOM shares to sell for in three years? 7. Beta Company currently has an EPS of $3.85 that grows at 7%. If the peer PE ratio is 21, what is the share price five years from now? (Hint: calculate EPSs first.)