In $2000,$ Vornado paid dividends per share of $$2\mathrm{.}12$ on earnings per share of $$2\mathrm{.}22.$

Expected payout ratio $?$

The firm had a return on equity of $12\mathrm{.}29\%.$

We use the average beta for real estate investment trusts of $0\mathrm{.}69,$ a riskfree rate of $5\mathrm{.}4\%$ and a risk

premium of $4\%$ to estimate a cost of equity:

Cost of equity $?$

The expected growth rate is estimated from the dividend payout ratio and the return on equity: $?$

Value per share $?$

On May $14,2001,$ Vornado Realty was trading at $$36\mathrm{.}57.$