Bob Properties Inc. is expected to pay a dividend next year of $2..45 per share. Investors think that Bob Inc. will continue to increase it's dividend by 5% each year for the foreseeable future. a. If the required rate of return on Bob stock is 13% then what is Bob Inc.'s stock price ? b. Investors expect Bob Inc. to pay out 50% of its earnings as dividends. What is Bob Inc.'s price/earning ratio ? ( Here P/E is defined as current price divided by next year's earnings.)