Permian Partners (PP) produces from aging oil fields in west Texas. Production is 2.00 million barrels per year in 2018 , but production is declining at 8% per year for the foreseeable future. Costs of production, transportation, and administration add up to $27.00 per barrel. The average oil price was $67.00 per barrel in 2018 . PP has 9.0 million shares outstanding. The cost of capital is 9%. All of PP's net income is distributed as dividends. For simplicity, assume that the company will stay in business forever and that costs per barrel are constant at $27.00. Also, ignore taxes. a. Assume that oil prices are expected to fall to $62.00 per barrel in 2019,$57.00 per barrel in 2020 , and $52.00 per barrel in 2021 . After 2021, assume a long-term trend of oil-price increases at 6% per year. What is the ending 2018 value of one PP share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-1. What is PP's EPS/P ratio? (Do not round intermediate calculations. Round your answer to 4 decimal places.) b-2. Is it equal to the 9% cost of capital? Yes No