Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its earnings this year will be $2 per share. Investors expect a 12% rate of return on the stock.

Required:

(a)	At what price and P/E ratio would you expect the firm to sell? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Price	$
P/E ratio

(b)	What is the present value of growth opportunities? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

PVGO

$

(c)	What would be the P/E ratio and the present value of growth opportunities if the firm planned to reinvest only 20% of its earnings? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)