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Web Cites Research projects a rate of return of 1 0 % on new projects. Management plans to plow back 2 0 % of all

Web Cites Research projects a rate of return of 10% on new projects. Management plans to plow back 20% of all earnings into the firm. Earnings this year will be $2 per share, and investors expect a rate of return of 4% on stocks facing the same risks as Web Cites.What is the sustainable growth rate?What is the stock price?What is the present value of growth opportunities (PVGO)?What is the P/E ratio?What would the price and P/E ratio be if the firm paid out all earnings as dividends?

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