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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.

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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. 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? Note: Enter your answer as a whole percent. b. What is the stock price? Note: Do not round intermedlate calculations. Round your answer to 2 decimal places. c. What is the present value of growth opportunities (PVGO)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. What is the P/E ratio? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. e. What would the price and P/E ratio be if the firm paid out all earnings as dividends? Note: Round your answers to 2 decimal places

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