Company Qs current return on equity (ROE) is 12%. It pays out earnings as cash dividends using a payout ratio of 0.40. Current book value per share is $59. 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 10.5% and the payout ratio increases to 0.75. The cost of capital is 10.5%.

a.	What are Qs EPS and dividends in years 1, 2, 3, 4, and 5? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Year	EPS	Dividends
1	$	$
2	$	$
3	$	$
4	$	$
5	$	$

b.	What is Qs stock worth per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock worth per share

$