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 $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites.

a.	What is the sustainable growth rate? (Round your answer to 2 decimal places.)

b.	What is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.	What is the present value of growth opportunities (PVGO)? (Round your answer to 2 decimal places.)

d.	What is the P/E ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

P/E ratio

e.	What would the price and P/E ratio be if the firm paid out all earnings as dividends? (Round your answer to 2 decimal places.)