Problem 4-15 Two-stage DCF model Company Q 's current retum on equity (ROE) is 14\%. It pays out 50 percent of earnings as cash dividends ( P ayout ratio =0.50 ), Current book value per share is $60. Book value per shace will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 115 s and the payout ratio increases to 090 . The cost of equity is 115% a. What are Q's EPS and divedends in years 1,2,3,4, and 5 ? b. What is Q's stock worth per share? Complete this question by entering your answers in the tabs below. What are Q's [PS and dividends in years 1, 2, 3. 4, and 5? Note: Do not round intermediate calculationa. Round your antwers to 2 decimaliplaces Problem 4-15 Two-stage DCF model Compony Q 2 current retum on equity (ROE) is 14%. it pays out 50 percent of earnings as cash dividends (payout ratio =0.50 ). Current book value per share is $60 Book value per share will grow as Q reinvestr earnings. Assume that the ROE and payout tatio stay constant for the next four years. After that competion forces ROE down to 11.5% and the : payout ratio increases to 090 . The cost of equify is 11.5%. a. What are QS EPS and dividends in years 1,2,3,4, and 5 ? b. What is Q's stock worth per stiare? Complete this question by entering vour answers in the tabs below. What is Q 's stock worth per share? Note: Do not raund intermediate colculations. Round your anwwer to 2 decimal places