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Check my work 13 10 points eBook Problem 7-38 P/E Ratios (LO2) Web Cites Research projects a rate of return of 15% on new projects,

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Check my work 13 10 points eBook Problem 7-38 P/E Ratios (LO2) Web Cites Research projects a rate of return of 15% on new projects, Management plans to plow back 20% of all earnings into the firm. Earnings this year will be $4 per share, and investors expect a rate of return of 8% on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate? b. What is the stock price? c. What is the present value of growth opportunities (PVGO)? d. What is the P/E ratio? e. What would the price and P/E ratio be If the firm paid out all earnings as dividends? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Print References 3.00 % a. Sustainable growth rate b. Stock price c. PVOO d. P/E ratio .. Price P/E ratio

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