Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 25% of all earnings into the firm. Earnings this year will be $6 per share, and investors expect a 15% 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.) Sustainable growth rate %

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

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

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.) Price $ P/E ratio