9. A firm is expected to earn $1.50 in EPS during the next year. Its market capitalization rate is 12%, and its ROE is 12%.

a. Calculate this firms stock value per share if the company has a 0% plowback ratio? (4 points)

b. Calculate this same firms stock value per share if the company has a 25% plowback ratio. (4 points)

c. Comment on the changes made in the two calculations above, and how these changes affect the results. (4 points)