Exercise 4-2 Please use the following information for questions 1-10 (be careful about rounding). Stock A pays a dividend of $3 per share in year zero. In year 1, the dividend is $3.3 per share," The dividend growth rate is constant and the return on equity is 25%. 1. What is earnings per share in year 0 ? A) S6 B) $5 C) $4 D) $3 E) None of the above 2. What is earnings per share in year 1 A) $6.0 B) $5.5 C) $4. D) $5.0 E) None of the above 3. What is earnings per share in year 2? A) $6.05 B) $5.65 C) $4.75 D) $3.85 E) None of the above 4. What is the dividend per share in year 2? A) $3.55 B) $3.63 C) $3.30 D) S3.75 E) None of the above 5. What is the payout ratio at year 1 ? A) 0.5 B) 0.4 C) 0.6 D) 0.3 E) None of the above 6. What is the payout ratio at year 3 ? A) 0.5 B) 0.4 C) 0.6