Company Q$\text{'}$s current return on equity $($ROE$)$ is $16\%.$ It pays out $60$ percent of earnings as cash dividends $($payout ratio $=$

$0\mathrm{.}60).$ Current book value per share is $$57.$ Book value per share will grow as $Q$ reinvests earnings.

Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to

$12\mathrm{.}5\%$ and the payout ratio increases to $0\mathrm{.}70.$ The cost of equity is $12\mathrm{.}5\%.$

a$.$ What are Q$\text{'}$s EPS and dividends in years $1,2,3,4,$ and $5?$

b$.$ What is Q$\text{'}$s stock worth per share?

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Required B

What are Q$\text{'}$s EPS and dividends in years $1,2,3,4,$ and $5?$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.