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Please solve using Excel Permian Partners (PP) produces from aging oil fields in west Texas. Production is 1.81 million barrels per year in 2018 ,

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Permian Partners (PP) produces from aging oil fields in west Texas. Production is 1.81 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 $25.10 per barrel. The average oil price was $65.10 per barrel in 2018 . PP has 7.1 million shares outstanding. The cost of capital is 10\%. 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 $25.10. Also, ignore taxes. a. Assume that oil prices are expected to fall to $60.10 per barrel in 2019,$55.10 per barrel in 2020 , and $50.10 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.)

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