Permian Partners PP) produces from aging oil fields in west Texas Production is 1.83 million barrels per year in 2016, but production is declining at 6% per year for the foreseeable future Costs of production, transportation, and administration add up to $25.30 per barrel. The average oil price was $65.30 per barrel in 2016. PP has 7.3 million shares outstanding. The cost of capital is 8% All of PP's net income is distributed as div de s licit assume t ecompany will stay n business or and that costs per barrel are constant at $25.30. Also, ignore taxes. a. Assume that oil prices are expected to fall to $60.30 per barrel in 2017, $55.30 per barrel in 2018, and $50.30 per barrel in 2019. After 2019, assume a long-term trend of oil-price increases at 4% per year. What is the ending 2016 value of one PP share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share value2016 b-1. What is PP's EPS/P ratio? (Do not round intermediate calculations. Round your answer to 3 decimal places.) EPS/P ratio b-2 Is it equal to the 8% cost of capital? Yes No