The market requires a return of 10% from XYZ, Inc. The firm plowback 80% of its earnings, and its return on equity and earnings per share are expected to be 12% and $6, respectively.

a. What will be XYZ's growth rate? (Input your answer as a nearest whole percent.)

Growth Rate = ?

b. Calculate XYZ's P/E ratio? (Do not round intermediate calculations.)

P/E Ratio = ?