XYZ Corporation has total earnings of $500 million which are projected to remain constant. The company also has 300 million total shares outstanding. The corporation intends to distribute dividends to its shareholders according to the following schedule: Period 1: Give a dividend payout rate of 0% Period 2: Give a dividend payout rate of 100% Period 3 until forever: Give a dividend payout rate of 70%. Dividends are also projected to grow at a rate of 4% thereafter every year until forever while the equity cost of capital is 8%.

Based on the information above the company's EPS is $1.67 (rounded to 2 decimal places)

True

False

Based on the information above, what would be the stock price of XYZ corporation in period 2 (i.e. )?

A.$14

B.$80

C.$29.23

D.$40

What expression would correctly determine the price of XYZ's stock today (i.e. )?