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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.
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. o. What is the sustainable growth rate? (Enter your answer as a whole percent.) Sustainable growth rate b. What is the stock price? (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) Stock price c. What is the present value of growth opportunities (PVGO)? (Do not round Intermedlate calculatlons. Round your answer to 2 declmal places.) PVGO d. What is the P/E ratio? (Do not round Intermedlate calculatlons. Round your answer to 2 declmal 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 answers to 2 declmal places. Price P/E ratio
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