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.

d. What is the 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.)

A	Substainable growth rate	3.00
B	stock price	64.00
C	PVGO	14.00
D	P/E ratio	?
E	Price	50.00
	P/E ratio	?