Assume that P/E ratios are computed using current price and expected earnings (rather than current earnings), and that all earnings and dividend values are annual values. (SHOW ALL CALCULATIONS, NO EXCEL FUNCTIONS)

5. TNK, Inc. is expected to have earnings next year of $5.45 per share, and it employs a plowback ratio of 60%. TNK's capitalization rate is 9.5% and it can earn 10% on its investment opportunities. 5 pts a. What is TNK's P/E ratio? b. What is the value of TNK's assets in place? c. Suppose TNK's ROE is 11%, not 10%. What would be its P/E ratio