Q$4)$ Price$-$to$-$Earnings $($P$/$E$)$:

a$)$ A company plowback rate is $b=60\%.$ If the growth rate is $g=4\%$ and the market

capitalization rate is $k=8\%,$ what is the company price$-$to$-$earnings $\frac{P_0}{E_1}$ ratio?

b$)$ A company just paid a dividend of $D_0=$$$2\mathrm{.}75.$ Dividends are expected to grow at a rate of $g=$

$5\%.$ The company plowback rate is $b=80\%$ and the market capitalization rate is $k=8\%.$

Calculate $P_0$ and $E_1.$

c$)$ A company stock price is $P_0=$$$30\mathrm{.}00.$ A company just paid an annual dividend of $D_0=$$$1\mathrm{.}50.$

Dividends are expected to grow at a rate of $g=5\%.$ The company plowback rate is $b=65\%.$

What is the price$-$to$-$earnings ratio $\frac{P_0}{E_1}?$