Permian Partners (PP) produces from aging oil fields in west Texas. Production is 1.88 million barrels per year in 2018 , but production is declining at 6% per year for the foreseeable future. Costs of production, transportation, and administration add up to $25.80 per barrel. The average oil price was $65.80 per barrel in 2018 . PP has 7.8 million shares outstanding. The cost of capital is 8%. 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 $25.80. Also, ignore taxes. a. Assume that oil prices are expected to fall to $60.80 per barrel in 2019,$55.80 per barrel in 2020, and $50.80 per barrel in 2021 . After 2021 , assume a long-term trend of oil-price increases at 4% 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 8% cost of capital? Yes No