Print 1. Problem 15.01 (Algorithmic) eBook Problem 15-1 The Argo Pamphlet Company's dividend payout ratio is 36%. It is currently paying an annual dividend of $1.30. a. What is Argo's EPS? Round the answer to two decimal places. per share b. What is the market price of Argo's stock if its P/E ratio is 14? Round your answer to two decimal places. per share C. How much current income per share will stockholders lose if Argo cuts its payout ratio to 20% and nothing else changes? Round the answer to two decimal places. Do not round intermediate calculations. per share d. If the change in payout ratio does not affect the stock's price, approximately how many shares would a stockholder who owns 1,000 shares have to sell to make up her loss in current income? Ignore tax effects and transaction costs. Round the answer to the nearest whole number. Do not round intermediate calculations. shares 2. Problem 15.03 (Algorithmic) eBook Problem 15-3 Biltmore Industries has grown at an average of 8% per year over its long history. Its stock price is currently $40.00, and its most recent dividend was $2.10. Biltmore just announced that it plans to discontinue dividends for several years to take advantage of some growth opportunities. Analysts expect the stock price to increase by 10% per year for at least the next two years because of this growth. Elmer Bartlett owns 4,000 shares of Biltmore and has counted on their dividend payments to supplement his retirement income. Now it appears that he will have to start selling off his Biltmore stock to replace this lost income. How many shares of stock will Elmer have to sell in each of the next two years to replace his lost dividend income? Ignore taxes and transaction costs. Round your answers to the nearest whole number. Year 1 Sale: shares Year 2 Sale: shares