The common stock of Permanent Assurance Corporation currently trades at $40.00 per share and the company has announced plans to maintain its dividend next year at $1.30 per share. Your research indicates that historically, the firm's dividend payout ratio has averaged 60% while its return on equity averaged 9.0%. The book value of the shares is $25.00 and research shows there is relatively low variation in the firm's operations. You believe the firm's payout ratio and ROE should continue at their historic levels in the future over the long term. Enter your answers on the spreadsheet.

a) Based on the announced dividend, the dividend yield of the firm's shares is:

b) The long term dividend yield based on the firms financial and operational performance is estimated to be:

C) The long term growth rate for the firms EPS, cash flow, and dividends is forecast to be:

d) The expected annual rate of return on the common over the long term is:

e) Over the long term, the firm's PE multiple is estimated to be:

F) If the firm's ROE is forecast to decline to 8% in the future due a change in industry conditions, the firm's growth would:

g) If the firm's ROE is forecast to decline to 8% in the future due a change in industry conditions, the firm's long term PE multiple would: