Web Cites Research projects a rate of return of 15% on new projects. Management plans to...

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Web Cites Research projects a rate of return of 15% on newprojects. Management plans to plow back 20% of all earnings intothe firm. Earnings this year will be $4 per share, and investorsexpect a 8% rate of return on stocks facing the same risks as WebCites. a. What is the sustainable growth rate? (Enter your answeras a whole percent.) Sustainable growth rate 3 % b. What is thestock price? (Do not round intermediate calculations. Round youranswer to 2 decimal places.) Stock price $ c. What is the presentvalue of growth opportunities (PVGO)? (Do not round intermediatecalculations. 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 theprice and P/E ratio be if the firm paid out all earnings asdividends? (Round your answers to 2 decimal places.) Price $ P/Eratio

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Web Cites Research projects a rate of return of 15% on newprojects. Management plans to plow back 20% of all earnings intothe firm. Earnings this year will be $4 per share, and investorsexpect a 8% rate of return on stocks facing the same risks as WebCites. a. What is the sustainable growth rate? (Enter your answeras a whole percent.) Sustainable growth rate 3 % b. What is thestock price? (Do not round intermediate calculations. Round youranswer to 2 decimal places.) Stock price $ c. What is the presentvalue of growth opportunities (PVGO)? (Do not round intermediatecalculations. 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 theprice and P/E ratio be if the firm paid out all earnings asdividends? (Round your answers to 2 decimal places.) Price $ P/Eratio