Web Cites Research projects a rate of return of $20\%$ on new projects. Management plans to plow back $30\%$ of all earnings into the firm. Earnings this year will be $$2$ per share, and investors expect a rate of return of $10\%$ 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?