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Company Q's current return on equity (ROE) is 13%. It pays out 45 percent of earnings as cash dividends (payout ratio - 0.45). Current book

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Company Q's current return on equity (ROE) is 13%. It pays out 45 percent of earnings as cash dividends (payout ratio - 0.45). Current book value per share is $68. Book value per share will grow as Qreinvests earnings Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 110% and the payout ratio increases to 0.90. The cost of capitalis 11.0%. 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.) Year EPS Dividends 1 2 3 4 5 b. What is a's stock worth per share? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Stock worth per share

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