Stock A pays a dividend of $3 per share in year zero. In year 1, the dividend is $3.3 per share,. The dividend growth rate is constant and the return on equity is 25%.

1. What is the payout ratio at year 1 ? A) 0.5 B) 0.4 C) 0.6 D) 0.3 E) None of the above

2. What is the payout ratio at year 3 ? A) 0.5 B) 0.4 C) 0.6 D) 0.3 E) None of the above

3. What is the plowback ratio at year 1 ? A) 0.5 B) 0.4 C) 0.6 D) 0.3 E) None of the above

4. What is the plowback ratio at year 6 ? A) 0.5 B) 0.4 C) 0.6 D) 0.3 E) None of the above

5. What is the book value of equity per share in the beginning of year 1 ? A) $25 B) $24 C) $23 D) $22 E) None of the above

6. What is the book value of equity per share in the beginning of year 5 ? A) $33 B) $32 C) $31 D) $29 E) None of the above