Web Cites Research projects a rate of return of $15\%$ on new projects.

Management plans to plow back $20\%$ of all earnings into the firm. Earnings this

year will be $$4$ per share, and investors expect a rate of return of $8\%$ on stocks

facing the same risks as Web Cites.

a$.$ What is the sustainable growth rate?

b$.$ What is the stock price?

c$.$ What is the present value of growth opportunities $($PVGO$)?$

d$.$ What is the $\frac{P}{E}$ ratio?

e$.$ What would the price and P$/$E ratio be if the firm paid out all earnings as

dividends?

$($Do not round intermediate calculations. Round your answers to $2$ decimal

places.$)$