Permian Partners PP produces rom aging oil fields in west Texas Production is 1.81 million barrels per year in 2016 bu production is declining at 8% per year o, e reseeable future. Costs of production, transportation, and administration add up to $25.10 per barrel. The average oil price was $65.10 per barrel in 2016. PP has 7.1 million shares outstanding. The cost of capital is 10%. A o PPS et income distributed as di dends. For sin plic assume that he compan wil stay n business or ever and that costs per barrel are constant at $25.10. Also, ignore taxes a. Assume that oil prices are expected to fall to $60.1 per barrel in 2017, $55.10 per barrel in 2018, and $50 10 per ba elin 20A er2 19 assume a long-ten rendo o lip increases a 6% per year, what is the ending 2016 value o one PP share? Do not round intermediate ca cu ations Round your answer to 2 decima places. Share value2816 b-1. What is PP's EPS/P ratio? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b-2. Is it equal to the 10% cost of capital? Yes No