Company Qs current return on equity (ROE) is 16%. The firm pays out 60 percent of its earnings as cash dividends. (payout ratio = .60). Current book value per share is $62. 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 12.5% and the payout ratio increases to .80. The cost of capital is 12.5%. a. What are Qs EPS and dividends in years 1, 2, 3, 4, and 5?

Please show me how this is calculated using an HP12c