D. We want to compute the EPS, DPS and growth rate of Pabon. It has 2 m shares outstanding and $60m of book value of equity. Pabon expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets out of which it has $40 million debt. Its coe is.12, and its bheta is 1.2. (hint: the growth rate is found by (ROE)*RR-RE/EAT) E. We know the P/E is 20 times. The following information is for next year. The ATO is 2, EAT/Sales is .12 and TA/E is 1.5. If the equity is $ 40 million and the number of outstanding shares is 2 million, what is the price of the firm next year