XYZ Corporation has earnings per share $($EPS$)$ of $$15,$ a dividend payout rate of $60\%,$an expected return on investment $($ROI$)$ of $20\%$ and an expected equity cost of capital of $25\%$

Given the information above what is the current stock price of $xYZ$ corporation? Assume that dividends are expected to be paid forever.

A$.$ $$88\mathrm{.}24$

B$.$ $$36$

C$.$ $$53$

D$.$ $$60$

ue to a change in the economic environment, XYZ now estimates that its ROI will be $5\%,$ if the EPS, the dividend payout rate, and the cost of capital are the same as above, what would be the new stock price of $xYZ$ corporation? $($In other words, all values are the same as before with the exception of the ROI which is now $5\%$ instead of $20\%).$ Assume that dividends are expected to be paid forever.

A$.$ $$750$

B$.$ $$60$

C$.$ $$450$

D$.$ $$39$

What would be XYZ$\text{'}$s stock price if the dividend payout rate is now $100\%.$ the EPS and equity cost of capital are the same as before. $($You can use either the $5\%$ or $20\%$ ROI number. As you will notice, the ROI number doesn't affect the final answer$).$ Also, be mindful of what must be recalculated!

A$.$ $$450$

B$.$ $$60$

C$.$ $$39$

D$.$ $$36$