Company Q's current return on equity (ROE) is 12%. The firm pays out 40 percent of its earnings as cash dividends. (payout ratio = .40). Current book value per share is $54. 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 .80. The cost of capital is 10.5%.

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

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